Financial Sector Infrastructure

Financial Sector Infrastructure

A sound financial sector infrastructure is a prerequisite for stability and sustainable development of the financial sector. It is essential for improving countries’ investment climate and attractiveness towards foreign direct investments, broadening access to financial services and strengthening countries’ productivity and competitiveness.

Financial sector infrastructure is a component of a broad competitiveness agenda grounded in improved financial risk management.

World Bank Response: As part of its development mandate, the World Bank works with country clients on building strong financial sector infrastructure, i.e. payment systems, credit information, supervisory development plans, credit bureaus, collateral registries and corporate governance.

In strengthening financial sector infrastructure, the World Bank provides its country members with advice on alternative ways to:
• Design/improve payment systems through upgrade of physical infrastructure; development  of legal and regulatory frameworks; introduction of core banking solutions;
• Enhance accuracy and integrity of credit information through reviews of legal and regulatory frameworks; trainings and technical assistance to compile, standardize historic data and apply new scoring techniques; consumer/judiciary/legislature outreach and education; development of effective credit and collateral registries as well as rating agencies;
• Develop a framework for country level risk management and supervision composed of a set of complementary elements including on-/off-site supervision; accounting and auditing; corporate governance and consolidated supervision.