Measuring Financial Development in the Middle East and North Africa: A New Database

Abstract

This paper develops a methodology to construct detailed indices of financial sector development across countries and uses it to create a new panel database of finan-cial sector development in Middle East and North Africa (MENA) countries. It combines existing quantitative data with information from comprehensive surveys undertaken in 2000-01 and 2002-03. The data show that some MENA countries have relatively well-developed banking sectors and regulatory and supervisory regimes. However, across the region, the nonbank financial sectors and sup-porting institutions are in need of reform. The MENA region ranks far behind industrialized countries and East Asia in financial sector development. Copyright 2006, International Monetary Fund