An Overview of Factors Which Characterize the Financial Systems of Emerging and Developing Countries
Dr. Akwasi Adjei-Kuffour, Department of Accountancy, P.O BOX 981 Koforidua –Ghana.
Manuscript received on April 17, 2016. | Revised Manuscript received on April 24, 2016. | Manuscript published on April 25, 2016. | PP: 16-26 | Volume-4 Issue-4, April 2016. | Retrieval Number: D1081044416
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The paper attempts to discuss the factors which characterize the banking systems of many developing and emerging countries such as Africa, Caribbean, South America, Asia except Japan. The research will identified problems of savings, loans and poor asset management, interest rates and inflation, credit issues and borrowing in default. The paper will also focused on equity issues, market imperfection such as underdeveloped capital markets, problem of competition, severe asymmetric information, poor property rights, highly volatile economic environment. Finally compulsory reserve requirements, lending regulation, currency denominated liabilities, conglomerates, financial supervision. Issues of public finance, cost of financial intermediation will be discussed. Other areas to be hammered are financial layering, bank credit, lack of efficient resources, systemic stability risk. The paper will assessed the underlying problems and remedies such as the Basel Accord need to be emphasized. Finally a summary in the form of a conclusion will be briefly demonstrated.
Keywords: Africa, Caribbean, South America, Asia except Japan, requirements, lending regulation, currency denominated liabilities, conglomerates