According to World Bank report, in developing economies with lower per capita income, the banking system is more deeply
Posted: Wed Mar 09, 2022 8:39 am
According to World Bank report, in developing economies with
lower per capita income, the banking system is more deeply
entrenched than Non-bank Financial Institutions (NBFIs) and
securities markets, and the value of bank assets tends to be a
larger multiple of equity market capitalization than higher income
countries. See the figure below.
Choose one developing economy and one developed economy and find
their Per Capita GDP. Then compute ratio of “bank
assets/market capitalization” for both countries and briefly
discuss (Hint: Search on google. Find all numbers in US
dollars. “Bank assets” will bethe total value of all banks assets
in the country you choose. Similarly, “market
capitalization” is the total market value of all companies
listed in the stock exchange of that country).
lower per capita income, the banking system is more deeply
entrenched than Non-bank Financial Institutions (NBFIs) and
securities markets, and the value of bank assets tends to be a
larger multiple of equity market capitalization than higher income
countries. See the figure below.
Choose one developing economy and one developed economy and find
their Per Capita GDP. Then compute ratio of “bank
assets/market capitalization” for both countries and briefly
discuss (Hint: Search on google. Find all numbers in US
dollars. “Bank assets” will bethe total value of all banks assets
in the country you choose. Similarly, “market
capitalization” is the total market value of all companies
listed in the stock exchange of that country).