Data Set - Global Financial Development

Methodology

The Global Financial Development Database compares financial systems around the world across a number of parameters, which are explained in detail below. The database (available at worldbank.org) provides information on financial systems in 205 economies from 1960 to 2013 and includes measures of (1) financial depth, or the size of financial institutions and markets, (2) access, or the degree to which individuals and firms can and do use financial services, (3) the efficiency of financial intermediaries and markets in intermediating resources and facilitating financial transactions, and (4) the stability of financial institutions and markets.

Indicator
Description
Source
Private credit by deposit money banks to GDP (%) The financial resources provided to the private sector by domestic money banks as a share of GDP. Domestic money banks comprise commercial banks and other financial institutions that accept transferable deposits, such as demand deposits. International Financial Statistics (IFS), International Monetary Fund (IMF)
Private credit by deposit money banks and other financial institutions to GDP (%) Private credit by deposit money banks and other financial institutions to GDP. International Financial Statistics (IFS), International Monetary Fund (IMF)
Stock market capitalization + Outstanding domestic private debt securities to GDP (%) Stock market capitalization: Value of listed shares to GDP, calculated using the following deflation method: {(0.5)*[Ft/P_et + Ft-1/P_et-1]}/[GDPt/P_at] where F is stock market capitalization, P_e is end-of period CPI, and P_a is average annual CPI. End-of period CPI (IFS line PCPI) and average annual CPI is calculated using the monthly CPI values (IFS line PCPI).

Outstanding domestic private debt securities: Total amount of domestic private debt securities (amounts outstanding) issued in domestic markets as a share of GDP. It covers data on long-term bonds and notes, commercial paper and other short-term notes. Table 16A (domestic debt amount): all issuers minus governments / GDP. End of year data (i.e. December data) are considered for debt securities. The figures are deflated using the following methodology: {(0.5)*[Ft/P_et + Ft-1/P_et-1]}/[GDPt/P_at] where F is the level domestic private debt, P_e is end-of period CPI, and P_a is average annual CPI. GDP is from World Development Indicators. End-of period CPI is taken from IFS line PCPI month of December (or if not available Q4). Average annual CPI is constructed from the monthly CPI figure taken from IFS line PCPI.
Global Stock Markets Factbook and supplemental S&P data, Standard & Poor's and Bank for International Settlements.
Liquid liabilities to GDP (%) Ratio of liquid liabilities to GDP. Liquid liabilities are also known as broad money, or M3. They are the sum of currency and deposits in the central bank (M0), plus transferable deposits and electronic currency (M1), plus time and savings deposits, foreign currency transferable deposits, certificates of deposit, and securities repurchase agreements (M2), plus travelers checks, foreign currency time deposits, commercial paper, and shares of mutual funds or market funds held by residents. International Financial Statistics (IFS), International Monetary Fund (IMF)
Central bank assets to GDP (%) Ratio of central bank assets to GDP. Central bank assets are claims on domestic real nonfinancial sector by the Central Bank. International Financial Statistics (IFS), International Monetary Fund (IMF)
Deposit money banks' assets to GDP (%) Total assets held by deposit money banks as a share of GDP. Assets include claims on domestic real nonfinancial 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. International Financial Statistics (IFS), International Monetary Fund (IMF)
Financial system deposits to GDP (%) Demand, time and saving deposits in deposit money banks and other financial institutions as a share of GDP. International Financial Statistics (IFS), International Monetary Fund (IMF)
Stock market capitalization to GDP (%) Total value of all listed shares in a stock market as a percentage of GDP. Global Stock Markets Factbook and supplemental S&P data, Standard & Poor's
Stock market total value traded to GDP (%) Total value of all traded shares in a stock market exchange as a percentage of GDP. Global Stock Markets Factbook and supplemental S&P data, Standard & Poor's
Life insurance premium volume to GDP (%) Ratio of life insurance premium volume to GDP. Premium volume is the insurer's direct premiums earned (if Property/Casualty) or received (if Life/Health) during the previous calendar year. Sigma Reports, Swiss Re
Nonlife insurance premium volume to GDP (%) Ratio of nonlife insurance premium volume to GDP. Premium volume is the insurer's direct premiums earned (if Property/Casualty) or received (if Life/Health) during the previous calendar year. Sigma Reports, Swiss Re
Deposit money bank assets to deposit money bank assets and central bank assets (%) Total assets held by deposit money banks as a share of sum of deposit money bank and Central Bank claims on domestic nonfinancial real sector. Assets include claims on domestic real nonfinancial 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. International Financial Statistics (IFS), International Monetary Fund (IMF)
Outstanding total international debt securities / GDP (%) Amount of international debt securities (amount outstanding), as a share of GDP. It covers long-term bonds and notes and money market instruments placed on international markets. Bank for International Settlements (BIS)
Bank Z-score It captures the probability of default of a country's commercial banking system. Z-score compares the buffer of a country's commercial banking system (capitalization and returns) with the volatility of those returns. Bankscope, Bureau van Dijk (BvD)
Stock price volatility Stock price volatility is the average of the 360-day volatility of the national stock market index. Bloomberg
Bank credit to bank deposits (%) The financial resources provided to the private sector by domestic money banks as a share of total deposits. Domestic money banks comprise commercial banks and other financial institutions that accept transferable deposits, such as demand deposits. Total deposits include demand, time and saving deposits in deposit money banks. International Financial Statistics (IFS), International Monetary Fund (IMF)
Bank lending-deposit spread Difference between lending rate and deposit rate. Lending rate is the rate charged by banks on loans to the private sector and deposit interest rate is the rate offered by commercial banks on three-month deposits. International Financial Statistics (IFS), International Monetary Fund (IMF)
Account at a formal financial institution (% age 15+) The percentage of respondents with an account (self or together with someone else) at a bank, credit union, another financial institution (e.g., cooperative, microfinance institution), or the post office (if applicable) including respondents who reported having a debit card (% age 15+). Global Financial Inclusion (Global Findex) Database, World Bank
Market capitalization excluding top 10 companies to total market capitalization (%) Value of listed shares outside of the largest ten largest companies to total value of all listed shares. World Federation of Exchanges
Stock market turnover ratio (%) Total value of shares traded during the period divided by the average market capitalization for the period. Global Stock Markets Factbook and supplemental S&P data, Standard & Poor's
Bank overhead costs to total assets (%) Operating expenses of a bank as a share of the value of all assets held. Total assets include total earning assets, cash and due from banks, foreclosed real estate, fixed assets, goodwill, other intangibles, current tax assets, deferred tax assets, discontinued operations and other assets. Bankscope, Bureau van Dijk (BvD)
Bank net interest margin (%) Accounting value of bank's net interest revenue as a share of its average interest-bearing (total earning) assets. Bankscope, Bureau van Dijk (BvD)
Bank cost to income ratio (%) Operating expenses of a bank as a share of sum of net-interest revenue and other operating income. Bankscope, Bureau van Dijk (BvD)
Bank return on assets (%, after tax) Commercial banks' after-tax net income to yearly averaged total assets. Bankscope, Bureau van Dijk (BvD)
Bank return on equity (%, after tax) Commercial banks' after-tax net income to yearly averaged equity. Bankscope, Bureau van Dijk (BvD)
Bank concentration (%) Assets of three largest commercial banks as a share of total commercial banking assets. Total assets include total earning assets, cash and due from banks, foreclosed real estate, fixed assets, goodwill, other intangibles, current tax assets, deferred tax assets, discontinued operations and other assets. Bankscope, Bureau van Dijk (BvD)
Bank deposits to GDP (%) The total value of demand, time and saving deposits at domestic deposit money banks as a share of GDP. Deposit money banks comprise commercial banks and other financial institutions that accept transferable deposits, such as demand deposits. International Financial Statistics (IFS), International Monetary Fund (IMF)
Liquid liabilities in millions USD (2000 constant) Absolute value of liquid liabilities in 2000 US million dollars. Liquid liabilities are also known as broad money, or M3. They are the sum of currency and deposits in the central bank (M0), plus transferable deposits and electronic currency (M1), plus time and savings deposits, foreign currency transferable deposits, certificates of deposit, and securities repurchase agreements (M2), plus travelers checks, foreign currency time deposits, commercial paper, and shares of mutual funds or market funds held by residents. International Financial Statistics (IFS), International Monetary Fund (IMF)
Loans from nonresident banks (net) to GDP (%) Ratio of net offshore bank loans to GDP. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. Bank for International Settlements (BIS)
Loans from nonresident banks (amounts outstanding) to GDP (%) Ratio of outstanding offshore bank loans to GDP. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. Bank for International Settlements (BIS)
Number of listed companies per 1,000,000 people Number of domestically incorporated companies listed on the country's stock exchanges at the end of the year per 1,000,000 people (does not include investment companies, mutual funds, or other collective investment vehicles). Global Stock Markets Factbook and supplemental S&P data, Standard & Poor's
Remittance inflows to GDP (%) Workers' remittances and compensation of employees comprise current transfers by migrant workers and wages and salaries earned by nonresident workers. Data are the sum of three items defined in the fifth edition of the IMF's Balance of Payments Manual: workers' remittances, compensation of employees, and migrants' transfers. World Development Indicators (WDI), World Bank