Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The objectives of module C are twofold: (i) to corroborate the findings from the assessments of Accounting and Auditing (A&A) standards (module A) and the institutional framework for corporate financial reporting (module B) with reference to financial statements issued and reports from the regulators in the jurisdiction; and (ii) to gather perceptions on the demand for and quality of financial information from users of financial statements. The module is divided into three sections, which correspond to the three approaches for assessing actual practices: financial statements review; review of regulatory findings; and perceptions survey.

Finance and Financial Sector Development --- Financial Regulation --- Financial Regulation & Supervision --- Governance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Ethiopia's financial sector has, over the past decade, been operating under a financial repression framework used by the government for managing its monetary and foreign exchange policy, and financing of large infrastructure projects and state-owned-enterprises (SOEs). Instruments used under this framework include the central bank financing of the government, a state-dominated banking sector, mandatory financing of priority projects and directed credit, administered interest rates, a captive domestic market for government debt, high liquidity and capital requirements, and strict foreign exchange controls. Over time, the framework has led to the build-up of large macro-financial imbalances; these include a system of fiscal dominance, pressures on inflation, the overvaluation of the Birr, a chronic shortage of foreign exchange, the lack of development of the financial system, a credit allocation skewed toward the public sector, and an overall risk of malinvestment. This report was prepared as part of a technical assistance engagement and was based on a request from the National Bank of Ethiopia (NBE) as an input to support their development of a financial sector modernization roadmap to meet the overall government reform plans. The report provides an insight on operations and challenges in Ethiopia's financial sector and proposes a framework to help open and transform the current system to meet the country's future market-oriented growth plan. The report is organized along the NBE Roadmap framework which is aligned across three pillars: (i) financial stability and safety net; (ii) long-term finance and financial markets; and (iii) access to finance and financial inclusion. Opening of the financial sector constitutes a cross-cutting theme.

Banking Sector --- Finance and Financial Sector Development --- Financial Regulation --- Financial Regulation and Supervision --- State-Owned Banks

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

A wave of accounting scandals beginning about fifteen years ago, including Enron, WorldCom, and Parmalat, created a consensus among policymakers across the globe that independent auditors were not adequately challenging the financial reporting by their clients and could not be trusted to regulate themselves. Beginning with the Sarbanes-Oxley Act of 2002 in the U.S., there has been a global movement away from self-regulation of the auditing profession and towards independent oversight. Perhaps the most important milestone in this movement was the 2006 Audit Directive of the European Union, which required all EU members and accession candidates to implement independent oversight. A key goal of independent oversight is to provide relevant and reliable information to investors, lenders, audit committees, regulators, other stakeholders, and the general public about auditors and the audit market, among other matters. This paper aims to provide a brief synopsis on the topic of reporting by audit oversight bodies (AOBs) through their annual and inspection reports. It outlines international principles and legislative requirements, highlights certain good practices and shares results from a focused survey across EU-REPARIS and STAREP countries.

Finance and Financial Sector Development --- Financial Regulation and Supervision --- Governance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

There is growing evidence that financially inclusive countries are more financially stable and exhibit better micro- and macro-economic conditions conducive to financial well-being of individual consumers. In order to produce significant economic and societal benefits, financial inclusion needs to be promoted in an environment where it is safe for consumers to use financial services and products. Strong financial consumer protection (FCP) helps ensure that the growing use of financial services benefits consumers and does not create undue risks while also supporting financial stability, integrity, and inclusion objectives. Building upon the fifteen most recent World Bank diagnostic reviews and informed by key guidance and relevant research, this note deals exclusively with institutional arrangements for FCP that refer to the number, capacity, organization, structure, resources, and processes of the agency(ies) responsible for FCP regulation and supervision of financial institutions. Institutional arrangements are one of the key determinants of efficiency and ultimate success of any FCP framework. This note is intended to assist policymakers, regulators, and supervisors seeking to establish new institutional arrangements or strengthen the existing ones in their respective countries. The note discusses importance of FCP, main models around the world, their advantages and disadvantages, as well as principal challenges faced by FCP agencies.

Finance and Financial Sector Development --- Financial Literacy --- Financial Regulation & Supervision

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The report analyzes the status of the Nigerian Microfinance Banks (MFBs) sector and aims to identify and address the challenges of its effective regulation and supervision. Ensuring the financial soundness of the MFB sector is regarded as a prerequisite for its further development. This report was prepared at the request of Other Financial Institutions Supervision Department (OFISD) of the Central Bank of Nigeria (CBN) to inform OFISD's efforts to develop a strategy for regulation of the MFB sector with emphasis on its consolidation. The report does not attempt to address in depth other systemic issues related to microfinance market development, such as funding constraints or gaps in financial infrastructure. While important these factors are secondary to the report's central focus on reforming and recalibrating the regulatory framework and ensuring effective supervision, which is regarded as necessary precursors to the growth of the sector. Only once these regulatory and supervisory reforms are implemented will the MFB sector be better positioned to start to make a more significant and sustainable contribution to financial inclusion. The findings of the report are complemented with fifteen case-studies based on a representative sample of different MFB business models and origins, drawing lessons regarding the challenges faced by the sector about factors such as their business model, governance, funding, and client base. The Microfinance Policy, Regulatory and Supervisory Framework for Nigeria of 2005 established MFBs as a means of formalizing microfinance institutions (MFIs) in order to promote financial discipline and sustainability, while also providing access to financial services to the unbanked population. The framework was designed to attract new capital as well as to regularize Community Banks (CBs), which had been established since the early 1990s, mainly as conduits for directed lending. Licensed by the CBN, MFBs are allowed to solicit deposits, which are guaranteed by the Nigeria Deposit Insurance Corporation (NDIC).

Access to Finance --- Finance and Financial Sector Development --- Financial Regulation --- Financial Regulation and Supervision --- Financial Services --- Rural Development