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Improving Banking Supervisory Mechanisms
In the OIC Member Countries
52
banks? (19) What percentage of the top ten banks is rated by international credit rating
agencies (e.g., Moody's, Standard and Poor’s)? (20) How many of the top ten banks are rated
by domestic credit rating agencies?
Table 19: External Governance Index (Selected OIC Countries)
Source: World Bank, Bank Regulation and Supervision Survey
With respect to external governance, OIC countries perform equally well as the EU-27
countries and US with an average degree of 15.9 out of 19, where higher values indicate more
effective governance. We observe an increasing trend with respect to this measure in OIC
countries, which suggest OIC countries are improving to a point which is higher than EU-27
average. Based on the available data, the countries which are performing best according to
these criteria are Indonesia and Pakistan with average 17 and 18 out of 19, respectively.
Survey Indonesia Kazakhstan Malaysia Nigeria Pakistan Turkey UAE Saudi Arabia Algeria
Selected
OIC
Average
Strength of External Audit
2000
5
7
7
4
7
7
7
7
7
6,4
Range 0-7
2003
7
7
6
6
7
7
7
7
7
6,8
2007
7
5
7
5,83
7
7
7
6
7
6,5
2011
7
N/A.
5
5,6
7
7
7
N/A.
N/A.
6,4
Financial Statement Transparency
2000
4
3
5
5
6
4
6
6
4,5
4,8
Range 0-6
2003
6
3
6
5
5
6
6
6
4
5,2
2007
5
4
6
5
6
6
6
6
4
5,3
2011
6
2
5
6
6
5
6
N/A.
N/A.
5,1
Accounting Practices
2000
1
0
1
1
1
1
1
1
1
0,9
Range 0-1
2003
1
0
1
1
1
1
1
1
1
0,9
2007
1
0
1
1
1
1
1
1
1
0,9
2011
1
N/A.
1
1
1
1
1
N/A.
N/A.
1,0
External Ratings and Creditor
Monitoring
2000
2,5
1,25
2
1
2
1,25 N/A.
2,5
N/A.
1,8
Range 0-5
2003
N/A.
2
3
3
N/A.
N/A.
N/A.
N/A.
N/A.
2,7
2007
3
N/A.
3
0
3
N/A.
N/A.
3
N/A.
2,4
2011
3
N/A.
3
3
4
3
N/A.
N/A.
N/A.
3,2
External Governance Index
2000
N/A.
N/A.
15
11
N/A.
N/A.
13
N/A.
N/A.
13,0
Range 0-19
2003
N/A.
12
16
15
N/A.
14
N/A.
N/A.
N/A.
14,3
2007
16
N/A.
17
N/A.
17
N/A.
16
16
N/A.
16,4
2011
17
N/A.
14
N/A.
18
N/A.
14
N/A.
N/A.
15,8