Improving Banking Supervisory Mechanisms
In the OIC Member Countries
53
Table 20: External Governance Index
Source: World Bank, Bank Regulation and Supervision Survey
4.2.5 Restrictions on Entry into Banking Sector
The regulations on foreign bank entry to the domestic market is also an important measure for
the supervisory practices as it is primarily related to the home-host core principle of the Basel
Committee, since it is usually hard to impose cross-border regulations. In this measure, almost
all OIC countries perform at perfect level obtaining a score 7.94 out of 8 which suggest that OIC
countries impose entry and licensing standards in the banking sector which are in line with the
universal regulations.
Survey
OIC
Average
OIC-High
Income
Average
OIC-
Upper-
Middle
Income
Average
OIC-
Lower-
Middle
Income
Average
OIC-Low
Income
Average
EU-27
Average
United
States
Strength of
External Audit
2000 6,3 6,79 6,55 6,68 6,72 5,8 6
Range 0-7 2003 6,4 6,86 6,70 6,78 6,81 6,3 6
2007 6,5 6,68 6,66 6,57 6,62 6,3 5
2011 6,7 6,78 6,44 6,58 6,65 6,3 7
Financial
Statement
Transparency
2000 4,8 5,03 5,12 5,05 5,17 4,6 5
Range 0-6 2003 4,9 5,35 5,35 5,14 5,24 5,1 5
2007 4,7 5,34 5,44 5,14 5,25 5,3 5
2011 5,1 5,32 5,45 5,26 5,39 5,4 6
Accounting
Practices
2000 0,7 0,93 0,95 0,92 0,93 0,4 1
Range 0-1 2003 0,9 0,97 0,98 0,96 0,97 0,5 1
2007 0,9 0,96 0,97 0,95 0,95 0,9 1
2011 0,6 0,91 0,94 0,87 0,89 0,6 1
External Ratings
and Creditor
Monitoring
2000 1,5 1,77 1,73 1,87 1,87 1,3 2
Range 0-5 2003 2,6 2,63 2,78 2,67 2,67 2,0 4
2007 2,4 2,60 2,34 2,55 2,55 2,5 4
2011 2,5 2,90 3,09 2,92 2,92 2,5 4
External
Governance Index
2000 13,3 13,08 13,06 13,10 13,08 11,9 N/A.
Range 0-19 2003 14,6 14,28 14,69 14,46 14,46 14,3 N/A.
2007 15,9 16,08 16,34 16,15 16,12 15,0 N/A.
2011 15,6 15,11 15,41 15,46 15,22 15,1 N/A.