BÖLGESEL ÖRGÜTLER

In the strictest sense, financial intermediation means the process of taking in funds from depositors and then lending them out to borrowers.

In developing countries, the main purpose of the pre-1980s financial policies, (especially in the 1960s and the 70s) was to boost industry and development by providing low-cost financing.

RDB usually refers to four institutions: African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD) and Inter-American Development Bank (IDB).

The AfDB headquarters is located in Côte d’Ivoire

Most of the RDBs have two main funds called “hard” and “soft” lending windows.

Established in 1974 with concern for the possibility that international capital movements may lead to a global crisis, the Basel Committee for Banking Supervision (BCBS)- the BIS developed into a global meeting place for regulators and for developing international standards-has set forth the issues like business volume of each bank’s capital, whether banks have enough capital to protect themselves from high-risk, and relevant controls, in order to prevent risks that might arise within their own domestic economies.

Established in 1974 with concern for the possibility that international capital movements may lead to a global crisis, the Basel Committee for Banking Supervision (BCBS)- the BIS developed into a global meeting place for regulators.

The survival of these institutions depends on their engagement in a fierce competition between other “fund seeking” persons or institutions for attracting depositors’ savings.

Mr = Financial Intermediation ratio.

Mks = surplus of product in sectors that do not use financial intermediaries (their average weighted share in GNP).

Mc = Personal or corporate savings.

Msc = Inclination to unincorporation.

Md = the ratio of companies established through equity capital to the total number of companies.

Established in 1974 with concern for the possibility that international capital movements may lead to a global crisis, the Basel Committee for Banking Supervision (BCBS)- the BIS developed into a global meeting place for regulators and for developing international standards-has set forth the issues like business volume of each bank’s capital, whether banks have enough capital to protect themselves from high-risk, and relevant controls, in order to prevent risks that might arise within their own domestic economies.

Originally issued by the Basel Committee in 1997, the core principles for effective banking supervision were last revised by the Committee in September 2012. The revised Core Principles define 29 principles that are broadly categorised into two groups: the first group (1 to 13) focus on powers, responsibilities and functions of supervisors, while the second group (14 to 29) focus on prudential regulations and requirements for banks.

RDB usually refers to four institutions: African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD) and Inter-American Development Bank (IDB). Although each RDB has its own legal and operational status, they all share a similar mandate and highly cooperate with each other.

The IDB headquarters is located in Washington, D.C., with 26 country offices in regional member countries, as well as in Paris and Tokyo.

IMF’s Contingent Credit Line (CCL) introduced in 1999. This facility aims to strengthen member countries’ defences against financial crisis, providing contingent lines of credit to be disbursed in case of a crisis concerning fiscal or monetary indiscipline.

They were established to address a market failure in long-term cash flow to Europe devastated by the conflict and developing countries.

First issue: developing countries have to perform a number of tasks in order to stabilize their economies, like exerting discipline on their fiscal and monetary policies, enhancing their financial systems and diversifying exports via trade liberalization; Second issue: executing the second generation reforms to provide an institutional setting suitable for a modern economy, such as protecting the rule of law, assisting the progress of creating property rights and making sure they are properly carried into effect, providing transparency in economic and political activities, improving financial regulation and monitoring/supervision, reinforcing banks and similar structural reforms; Third issue: countries where the above-mentioned tasks have already been achieved or advanced to a large extent will need to defeat the resistance of markets in financing developing countries on a continual basis; Fourth issue: despite the fact that carrying out the above-mentioned tasks would considerably reduce the risk of financial crisis, it may not help eliminate it completely.

The MDBs (multilateral development banks) are among the international community’s immense success stories during post–World War II period.

The World Bank responded to an immediate need to rebuild European countries devastated by the World War II. Its first loan ($250 million - ($3.2 billion today) was to France in 1947.

Conceived in 1944 at the Bretton Woods Monetary Conference in Bretton Woods, the World Bank responded to an immediate need to rebuild European countries devastated by the World War II. Its first loan ($250 million - ($3.2 billion today) was to France in 1947, aimed at financing the equipment, fuel and raw materials for post-war reconstruction.

Also, the RDBs may expand this objective by supplying another
instrument: IMF’s Contingent Credit Line (CCL) introduced in 1999.