Cover -- Half-title -- Title -- Copyright -- Dedication -- Contents -- Introduction -- Financial markets and the international financial architecture -- Foundations of financial sector development -- Financial regulation and supervision -- Looking forward -- Part I: Finance and the International Financial Architecture -- 1 Law, Finance and Development -- 1.1 Law, Institutions and Economic Development -- 1.1.1 Geography and Endowments -- 1.1.2 Policies -- 1.1.3 Institutions -- 1.1.4 Recent Empirical Evidence -- 1.1.5 The Role of Law -- 1.1.6 The Way Forward -- 1.2 Financial crises in the 1990s -- 1.2.1 Prelude: 1990-95 -- 1.2.2 The Mexican Financial Crisis: 1994-95 -- 1.2.3 The East Asian Financial Crisis: 1997-98 -- 1.2.4 International Contagion: 1995 and 1998-99 -- 1.3 The role of the financial sector -- 1.3.1 Lessons from Financial Crises -- 1.3.2 The Financial System and Economic Growth -- 1.3.3 The Role of the Financial Sector -- 1.3.4 Financial Sector Development -- 1.4 Law, the financial sector and economic growth -- 1.5 Conclusion -- 2 Law, Financial Stability and the International Financial Architecture -- 2.1 The Bretton Woods System and Globalization of Financial Markets -- 2.1.1 Bretton Woods as Designed -- 2.1.2 Bretton Woods in Practice: 1944-94 -- 2.1.3 Responses to the Mexican Financial Crisis -- 2.2 Discussions of the New International Financial Architecture -- 2.2.1 The Changing Nature of Finance: Globalization -- 2.2.2 Crisis Prevention and Financial Stability: Structure and Process -- 2.2.3 Crisis Resolution: An On-Going Debate -- 2.3 International Financial Standards and Standard-setting Organizations -- 2.3.1 Coordination -- 2.3.2 Key Standards for Sound Financial Systems -- 2.3.3 Standard-setting and Standard-setting Organizations -- 2.3.4 Compendium of Standards -- 2.4 Implementation and Monitoring.

2.4.1 Implementation: A Domestic Process -- 2.4.2 International Financial Institutions: The Standards and Codes Initiative -- 2.4.3 Other Initiatives -- 2.5 conclusion -- Part II: Foundations of Finance -- 3 Preconditions for and Institutional Underpinnings of Finance -- 3.1 Preconditions for Financial Sector Development and Economic Growth -- 3.1.1 Governance -- 3.1.2 Property Rights -- 3.1.3 Enforcement of Contracts, Protection of Property Rights and Resolution of Commercial Disputes -- 3.1.4 Human Capital Development -- 3.2 Institutional Underpinnings of Finance -- 3.2.1 Use of Property Rights -- 3.2.2 Company Law -- 3.2.3 Sustainable Fiscal and Taxation System -- 3.2.4 Rule of Law -- 3.3 Conclusion -- 4 Central Banking and Financial Policy -- 4.1 Central Banking -- 4.2 Monetary Stability -- 4.2.1 Monetary and Financial Policy Transparency Code -- 4.2.2 Transparency of Macroeconomic Data -- 4.3 Financial Stability -- 4.3.1 Design of the Financial Safety Net -- 4.3.2 Contingency Planning -- 4.3.3 Lender of Last Resort -- 4.3.4 Financial intermediary Resolution and Insolvency -- 4.4 Payment and Settlement -- 4.4.1 International Efforts -- 4.4.2 International Standards -- 4.4.3 Developing Payment and Settlement Systems -- 4.5 Market Functioning: Government Securities Markets -- 4.6 Financial Development -- 4.7 Conclusion -- 5 Financial Infrastructure -- 5.1 Insolvency -- 5.1.1 International Efforts -- 5.2 Corporate governance -- 5.2.1 Recent Empirical Evidence -- 5.2.2 International Efforts -- 5.2.3 Financial Stability Forum Key Standard: Principles of Corporate Governance -- 5.2.4 Implementation -- 5.3 Financial information -- 5.3.1 Accounting -- 5.3.2 Auditing -- 5.3.3 Other Issues: Credit Ratings and Credit Information Systems -- 5.4 Market integrity: corruption, money laundering and financial crime -- 5.4.1 Corruption.

5.4.2 Money Laundering and Terrorist Financing -- 5.4.3 Financial Crime -- 5.5 Conclusion -- Part III: Financial Regulation and Supervision -- 6 Banking: Regulation, Supervision and Development -- 6.1 Banking Development -- 6.2 International Standards -- 6.2.1 Financial Stability Forum Key Standard: Core Principles for Effective Banking Supervision -- 6.2.2 Other Financial Stability Forum Standards -- 6.2.3 Implementation -- 6.3 Basel Core Principles (2006) -- 6.3.1 Preconditions for Banking -- 6.3.2 Objectives, Independence, Powers, Transparency and Cooperation (Principle 1) -- 6.3.3 Banking Activities (Principles 2 through 18 and 22) -- 6.3.4 Supervisors (Principles 19 through 21 and 23 through 25) -- 6.4 Framework for Addressing Banking Problems -- 6.4.1 Depositor Protection Schemes -- 6.4.2 Bank Insolvency -- 6.5 Conclusion -- 7 Nonbank Finance: Securities, Insurance, Pensions and Microfinance -- 7.1 Securities and Derivatives -- 7.1.1 Financial Stability Forum Key Standard: Objectives and Principles of Securities Regulation -- 7.1.2 Other Financial Stability Forum Standards -- 7.1.3 Implementation -- 7.1.4 Developing Securities Markets -- 7.2 Insurance -- 7.2.1 Financial Stability Forum Key Standard: Insurance Core Principles -- 7.2.2 Other Financial Stability Forum Standards -- 7.2.3 Implementation -- 7.2.4 Other International Standards -- 7.2.5 Developing Insurance -- 7.3 Pensions -- 7.3.1 International Standards -- 7.3.2 Developing Pensions -- 7.4 Other Forms of Nonbank Finance: microfinance and related activities -- 8 Financial Liberalization, Financial Conglomerates and Financial Regulatory Structure -- 8.1 Financial liberalization and financial development -- 8.1.1 New Financial Intermediaries -- 8.1.2 Financial Products and Services -- 8.2 Foreign and domestic participation and competition -- 8.2.1 The Domestic Context.

8.2.2 State Ownership in the Financial Sector -- 8.2.3 Foreign Competition -- 8.3 Financial liberalization and financial stability -- 8.3.1 Risks of Liberalization -- 8.3.2 The World Trade Organization and Financial Liberalization -- 8.3.3 The World Trade Organization and Domestic Regulation -- 8.3.4 The World Trade Organization and International Financial Regulatory Standards -- 8.4 Financial intermediary activities and financial conglomerates -- 8.4.1 International Standards -- 8.4.2 Addressing Financial Conglomerates -- 8.5 Financial regulatory structure -- 8.5.1 International Standards -- 8.5.2 Developing Effective Financial Authorities -- 8.5.3 Coordination Among Financial Authorities -- 8.5.4 Access to Reliable and Current Information -- Part IV: looking forward -- 9 The International Financial Architecture -- 9.1 International Standards and Codes -- 9.1.1 International Standards and Codes and Financial Stability -- 9.1.2 Integrating Development with Financial Stability -- 9.2 Improving the International Financial Architecture -- 9.2.1 International Institutions, Financial Stability and Financial Development -- 9.2.2 Integrating the International Financial Architecture -- 9.3 Debt and Liquidity Crises and their Resolution -- 9.3.1 Crisis Resolution: An On-Going Debate -- 9.3.2 Contemporary International Lending -- 9.3.3 Proposed Solutions -- 9.3.4 Private Lending and Investment -- 9.3.5 The International Financial Architecture and Crisis Resolution -- 9.4 conclusion -- 10 Reforming Financial Systems -- 10.1 Supporting Financial Development -- 10.2 The Role of the International Architecture -- 10.3 Domestic Models -- 10.3.1 The Regulated Market Economy -- 10.3.2 Financial Structure -- 10.3.3 Domestic Financial Development -- 10.4 The Role of Regional Arrangements -- 10.4.1 The European Experience.

10.4.2 Implications for Other Regional Arrangements -- 10.5 Conclusion -- Index.