Financial Outlook of the OIC Member Countries 2017
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sector which includes central, state and local governments, nonfinancial public enterprises and
private sector. Deposit money banks comprise commercial banks and other financial
institutions that accept transferable deposits, such as demand deposits’28.
Compared to private credit, this indicator includes also credit to government and bank assets
other than credit. Therefore, the results for OIC average and for various income groups are
different than the previous indicator. As can be seen from the figure below, OIC average
increased regularly over the years and closed to the world averages. On the other hand, the
results for the OIC-UMIG and OIC-HIG groups have significantly surpassed the world averages
in recent years. Since this indicator includes the claims of the banks on government, the results
for these two groups clearly indicates the increasing role of the government to use financial
markets more compared to the low income groups.
Figure 14: Deposit Money Banks' Assets to GDP (%)
Source: Authors’ calculation from the World Bank Database
In order to measure depth in the financial markets size of the stock and bond markets could be
used as an indicator. To approximate the size of the stock markets, the most common choice in
the literature is stock market capitalization to GDP29. This indicator refers to total value of
all listed shares in a stock market as a percentage of GDP.
Regarding this indicator, the low income group of OIC member countries does not have data,
therefore the analysis will be conducted on the rest of the country groups. The world average
recorded as 55.2% in 2015. The OIC average increased continuously over the period and
closed to the world averages recording as 52.6% in 2015. The rates for the high income group
of OIC countries have been more than the world averages as the stock markets in these
countries have shown significant improvements during recent years which is highly correlated
to the development of stock exchange markets as well as economic growth.
28 World Bank, Global Financial Development Report, June 2017.
29 Benchmarking Financial Systems Around the World 2012, World Bank
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OIC-LIG OIC-LMIG OIC-UMIG OIC-HIG OIC-Average World Average
2012 2013 2014 2015