Long term funding and regulation: facilitating financial stability and development in low income developing countries

Marianne, Ojo (2015): Long term funding and regulation: facilitating financial stability and development in low income developing countries.

Abstract

Basic and fundamental issues which link financing and funding activities to financial regulation involve the problems of systemic risks and asymmetric information. In addition to addressing these issues, this paper will also consider other issues related to long term funding, which affect financial stability and development in Low Income Developing Countries (LIDCs) - namely inadequate regulatory frameworks, as well as constraints and accessibility to long term funding.

By considering the recent developments with the Basel framework, it will seek to illustrate, by way of reference to studies, why low income developing countries, as well as selected emerging economies are still lagging behind in terms of the implementation of regulatory standards. It will also aim to demonstrate how these countries would largely benefit from effective implementation of these standards. Whilst aiming to facilitate means whereby sources of longer term funding could be enhanced, it will also consider the disadvantages and risks associated with longer term funding, challenges imposed by debt sustainability and propose alternative sources of funding. Transparency and disclosure, it will be highlighted, continue to generate severe obstacles to financial development and growth, as will be reflected from results of certain investigations.

• Item Type: MPRA Paper
• Language: English
• Keywords: liquidity risk; long term funding; financial stability; Low Income Countries (LICs);information disclosure
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; F - International Economics > F3 - International Finance; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; K - Law and Economics > K2 - Regulation and Business Law; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing

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