Contractual savings in countries with a small financial sector

Gregorio Impavido (), Alberto R. Musalem and Dimitri Vittas

No 2841, Policy Research Working Paper Series from The World Bank

Abstract: Countries with small financial systems are generally small economies with a reduced dimension of institutional relationships, a greater concentration of wealth, and a relatively less independent civil service. These characteristics facilitate concentration of functions and, more generally, weak governance. Only small economies with a relatively high level of per capita income, minimum core of sound banks and insurance companies, sound and credible macroeconomic policies, and open capital accounts can benefit from the development of contractual savings. This can increase the options to obtain sound coverage against contingencies, increase the supply of long term savings, promote financial deepening, and improve financial risk management.

Keywords: Payment Systems&Infrastructure; Environmental Economics&Policies; Banks&Banking Reform; Economic Theory&Research; Insurance&Risk Mitigation; Economic Theory&Research; Banks&Banking Reform; Insurance&Risk Mitigation; Environmental Economics&Policies; Insurance Law (search for similar items in EconPapers)
Date: 2002-05-31
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Citations: View citations in EconPapers (4)

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