Cooperative Financial Institutions
Cooperative Financial Institutions
Carlos E. Cuevas(World Bank); Klaus P. Fische(World Bank)
30권 2호, 1~34쪽
초록
The paper addresses topics on which an agreement is necessary to arrive at consensus guidelines or “principles” of regulation and supervision of cooperative financial institutions(CFIs) in developing countries. Specifically we identify those aspects related to CFI industry structure, governance, legislation and regulation over which a well established base of knowledge exists; we point out the most important gaps in understanding and those over which a considerable degree of disagreement among stakeholders appears to exist and that require research to consolidate opinions. The main propositions that emerge from the paper requiring verification are the following: 1.The CFI present advantages over investor-owned financial intermediaries in the provision of financial services through breaking the market failure that leads to credit rationing, thus contributing to a “functional financial system” in the sense of Merton and Bodies(2004). 2.(By extension of 1) a financial system that presents a diversified institutional structure, including institutional types, among other CFIs, will be more efficient in promoting economic growth and reduced poverty. 3.Expense preference(EP) by managers-or equivalently the member-manager conflict-is the principal source of CFI failure. Control of expense preferences should be a central theme of prudential supervision of CFIs. 4.Mutual financial intermediaries require a specialized regulatory environment that supports the special nature of the contracts imbedded in the institutions. 5.Indirect supervision(auxiliary/delegated) is a powerful tool to：(i) adapt supervision to specific needs of the CFI; (ii) facilitate integration of the CFI to a supervision environment with financial sector standards; and (iii) encourage integration. 6.Tiering(splitting) the CFI sector into two groups, one being a large/open CFIs under banking authority supervision and another a small/closed CFI, is(is not) a reasonable strategy to creating an appropriate regulation and supervision(R&S) environment for CFIs.
Abstract
The paper addresses topics on which an agreement is necessary to arrive at consensus guidelines or “principles” of regulation and supervision of cooperative financial institutions(CFIs) in developing countries. Specifically we identify those aspects related to CFI industry structure, governance, legislation and regulation over which a well established base of knowledge exists; we point out the most important gaps in understanding and those over which a considerable degree of disagreement among stakeholders appears to exist and that require research to consolidate opinions. The main propositions that emerge from the paper requiring verification are the following: 1.The CFI present advantages over investor-owned financial intermediaries in the provision of financial services through breaking the market failure that leads to credit rationing, thus contributing to a “functional financial system” in the sense of Merton and Bodies(2004). 2.(By extension of 1) a financial system that presents a diversified institutional structure, including institutional types, among other CFIs, will be more efficient in promoting economic growth and reduced poverty. 3.Expense preference(EP) by managers-or equivalently the member-manager conflict-is the principal source of CFI failure. Control of expense preferences should be a central theme of prudential supervision of CFIs. 4.Mutual financial intermediaries require a specialized regulatory environment that supports the special nature of the contracts imbedded in the institutions. 5.Indirect supervision(auxiliary/delegated) is a powerful tool to：(i) adapt supervision to specific needs of the CFI; (ii) facilitate integration of the CFI to a supervision environment with financial sector standards; and (iii) encourage integration. 6.Tiering(splitting) the CFI sector into two groups, one being a large/open CFIs under banking authority supervision and another a small/closed CFI, is(is not) a reasonable strategy to creating an appropriate regulation and supervision(R&S) environment for CFIs.
- 발행기관:
- 한국중소기업학회
- 분류:
- 경영학