Financial Development in Target Markets Dissertation - 1

Financial Development in Target Markets - Dissertation Example These countries will then be crosschecked and compared to their financial developments level through recalling the World Bank initiative, and finally will be compared with the UK economic development. The following are the selected countries; High income OECD - United States, High-income non-OECD -Hong Kong, Latin America and Caribbean-Mexico, South Asia- India, African sub-Saharan-Nigeria, Middle East- Egypt, East Asia and Pacific-Japan, Europe and Central Asia- RussiaThese countries will then be crosschecked and compared to their financial developments level through recalling the World Bank initiative, and finally will be compared with the UK economic development. The following are the selected countries; High income OECD - United States, High-income non-OECD -Hong Kong, Latin America and Caribbean-Mexico, South Asia- India, African sub-Saharan-Nigeria, Middle East- Egypt, East Asia and Pacific-Japan, Europe and Central Asia- Russia Banking sector development of the above eight cou ntries can be measured using at least one indicator from each of the various methods of indicators including measures of depth, access, efficiency and stability. To begin with, let the measure the financial development of the USA using any of the four indicators. The variable of the financial depth on the economic development is normally private credit to GDP. More specifically, the variable is the domestic private credit to the corresponding real sector by the deposit money banks in terms of the percentage of the local currency GDP. Thus, private credit excludes credit issued to the governments, governments’ agencies and corresponding public enterprises (Pearl, 2011, pp.212-289). Private credit to the GDP varies broadly across states and correlates strongly with the income level. For instance, private loans within high countries are standing at 103% that is four times the underlying average ratio within the little countries as depicted in the table (1) below. Based on the me asure, economies having deep financial systems are found in Europe, the United States, Japan, and Nigeria.