COMCEC Financial Outlook 2018

To measure and benchmark financial systems, the outlook utilizes several measures of following

four characteristics of financial institutions and markets:

(a) Financial Depth: Measures the size of financial institutions and markets,

(b) Financial Access: Measures the degree to which individuals can and do use financial

institutions and markets,

providing financial services,

(d) Financial Stability: Measures the stability of financial institutions and markets in order to

measure and benchmark financial systems in the OIC region

Although the above referred study of the World Bank has developed a number of measures to

compare the characteristics of the financial markets, the following indicators are selected to

analyze the four measures of the financial markets in the OIC countries as depicted in Table-2.

Table 2: Selected Financial Data on the OIC Member States

Indicator

Code

Name of the Indicator

DEPTH

GFDD.DI.01

GFDD.DI.02

GFDD.DM.01

Private credit by deposit money banks to GDP (%)

Deposit money banks' assets to GDP (%)

Stock market capitalization to GDP (%)

ACCESS

GFDD.AI.01

GFDD.AI.02

GFDD.AM.02

Bank accounts per 1,000 adults

Bank branches per 100,000 adults

Market capitalization excluding top 10 companies to total

market capitalization (%)

EFFICIENCY

GFDD.EI.02

GFDD.EI.05

GFDD.EI.06

Bank lending-deposit spread

Bank return on assets (%, after tax)

Bank return on equity (%, after tax)

STABILITY

GFDD.SI.02

GFDD.SI.03

GFDD.SI.05

Bank nonperforming loans to gross loans (%)

Bank capital to total assets (%)

Bank regulatory capital to risk-weighted assets (%)

Source: World Bank 2018

These four characteristics of financial institutions and markets are used to capture the features

of financial systems and to provide the empirical shape of the financial development in the OIC

countries. While a quite number of indicators are produced to measure the performances of

financial institutions and markets, the data limitation especially for the low-income and lower-

middle income group of the OIC countries have led to employ a few benchmarks to assess the

financial markets. The World Bank databases have been used to analyze the recent

Cihak, M., Demirgüç-Kunt, A., Feyen E., Levine, R., 2012