National and Global Islamic Financial Architecture:
Prolems and Possible Solutions for the OIC Member Countries
19
Chart ‎2.5: Size of the Capital Markets
Source: Calculated from World Bank Global Financial Development database
In summary, the results show that while the size of the banking sector of OIC MCs is close to
that of the world average, the insurance sector is still relatively small. Similarly, in capital
markets, the stock market in OIC MCs is relatively large, but the debt securities market is
smaller than the world average.
2.2.2. Features of the Financial Sector of OIC MCs
The World Bank’s Global Financial Development Report uses four characteristics to assess the
status of various aspects of the financial sectors of different countries. Financial institutions
and financial markets are evaluated according to their depth, access, efficiency and stability.
The status of OIC MCs for each of these characteristics relative to countries in different income
groupings are presented below.
Depth
The depth of financial institutions is defined by domestic private credit to the real sector by a
deposit of money banks and other financial institutions as a percentage of GDP. Chart 2.6
shows that the average depth of 51 OIC MCs is 32.3% which is lower than the average of the
world (41.5%), high income countries (100.5%), and middle income countries (37.7%).
Though the OIC MCs average larger than that of low income groups (16.4%), the overall results
indicate that their financial institutions are relatively shallow.
0
10
20
30
40
50
60
World High
Income
Middle
Income
Low Income OIC
28,2
44,2
12,3
16,6
30,8
53,0
20,1 19,4
37,1
Outstanding domestic private debt securities to GDP (%)
Stock market capitalization to GDP (%)