tailieunhanh - CENTRAL BANKING, FINANCIAL INSTITUTIONS AND CREDIT CREATION IN DEVELOPING COUNTRIES

A second problem often observed in developing countries in the credit-investment process is that loans are allocated according to political considerations or ties between bank managers and the corporate sector. This practice is problematic for two reasons: First, even if the central bank can create liquidity and the financial sector as a whole is thus not be constrained by a lack of base money, banks in developing countries are often weakly capitalized. Legal minimum capital-adequacy ratios hence limit the overall amount of loans provided by the financial sector. If a large share of the loans is not allocated by. | UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT DISCUSSION PAPERS CENTRAL BANKING FINANCIAL INSTITUTIONS AND CrEdIT creation IN DEVELOPING COUNTRIES No. 193 January 2009 UNITED NATIONS CENTRAL BANKING FINANCIAL INSTITUTIONS AND CREDIT CREATION IN DEVELOPING COUNTRIES Sebastian Dullien No. 193 January 2009 Acknowledgement The author thanks a number of anonymous economists from the Division on Globalization and Development Strategies in UNCTAD for their helpful comments. The views expressed and remaining errors are the author s responsibility. UNCTAD OSG DP 2009

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11    157    1    17-05-2024
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