"Global Financial Development Report 2013 : Rethinking the Role of the State in Finance is the first in a new World Bank series. It provides contribution to financial sector policy debates, building on novel data, surveys, research, and wide-ranging country experience, with emphasis on emerging-market and developing economies. The global financial crisis has challenged conventional thinking on financial sector policies. Launched on the fourth anniversary of the Lehman Brothers collapse - a turning point in the crisis. This volume re-examines a basic question: what is the proper role of the state in financial development? To address the question, this report synthesizes new and existing evidence on the state's performance as financial sector regulator, overseer, promoter, and owner. It calls on state agencies to provide strong regulation and supervision and ensure healthy competition in the sector, and to support financial infrastructure, such as the quality and availability of credit information. It also warns that direct interventions - such as lending by state-owned banks, used in many countries to counteract the crisis may end up being harmful."--Extracted from World Bank website on 27 September 2012. |