Intermediation and financial stability in emerging markets ; Intermédiation et stabilité financière dans les marchés émergents

Abstract

Since the late 80s, emerging economies have started a process of financial liberalisation in the context of a significant increase in the number of banking crises. They show in particular the importance of taking the institutional framework into account when analysing the implications of financial liberalisation. In this paper we seek to avoid excessive market alternatives/market insufficiency by stressing that the conditions for the sustainability of financial reforms are the search for complementarity between the market and intermediation in emerging countries. The idea is that the response to financial instability must be understood in an institutional dynamic where emerging economies would use the benefits of an intermediated system to strengthen the market process. Keywords: emerging markets, financial crisis, financial liberalisation, market and institutions Abstract Financial Liberalisation and Stability of the Financial System in Emerging Markets: the institutional dimension of financial crises Emerging economies which have implemented since the end of the 80's financial liberalisation process has been Confronted at the same time to banking crisis. This latter highlight the role played by the institutional framework in the financial liberalisation process. The objective of this paper is to go through the usual alternative too much/too little market in order to explain that the success of any liberalisation process links on the completeness of the market and the intermediary. The point is that the solution to financial independence is to be found into an institutional dynamics into which emerging economies may benefit from intermediaries in order to enforce the market process. ; International audience ; Since the late 80s, emerging economies have started a process of financial liberalisation in the context of a significant increase in the number of banking crises. They show in particular the importance of taking the institutional framework into account when analysing the implications of financial ...