Front Matter

Front Matter

Author(s):
International Monetary Fund
Published Date:
June 1985
    Share
    • ShareShare
    Show Summary Details

    EMERGING FINANCIAL CENTERS

    Legal and Institutional Framework

    Second Printing, January 1984

    International Standard Book Number: ISBN 0-939934-20-5

    Library of Congress Catalog Card Number: 82-84226

    EMERGING FINANCIAL CENTERS

    Legal and Institutional Framework

    Edited by

    Robert C. Effros

    Bahamas • Hong Kong • Ivory Coast Kenya • Kuwait • Panama • Singapore

    International Monetary Fund

    Washington, D.C. 1982

    PREFACE

    The nineteenth and early twentieth centuries saw the rise of great financial centers. It was a general rule that the countries in which these arose were characterized by powerful and growing economies. In the second half of the twentieth century a new phenomenon has made its appearance. Among the newly developing countries, a certain number are emerging as financial centers. However, unlike the experience of the older financial centers, these are not necessarily situated in the midst of great national economies. In a world characterized by instant communication and increasing mobility of funds, some of the emerging centers are, in fact, geographically distant from the principal sources and destinations of their funds.

    This volume contains the chief financial legislation of seven developing financial centers. The legislation is, in each case, introduced by an essay analyzing the individual legal and institutional framework, as well as the particular experiences of the center. The volume will be of interest, not only to central bankers and those directly charged with charting the financial courses of their countries but to legislators, lawyers, economists, and others concerned with the mechanisms of financial service and growth.

    The contents of this volume have been selected, assembled, and edited by Mr. Robert C. Effros, Assistant General Counsel for Legislation in the Fund’s Legal Department, who has been closely associated with legislative drafting and legal advice on financial matters provided by the Fund to many of its member countries.

    December 1982

    J. de LarosiÈre

    Managing Director

    International Monetary Fund

    FOREWORD

    As provided in Article I of its Articles of Agreement, an important purpose of the International Monetary Fund is “To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration in international monetary problems.” In addition, Article VIII of these Articles provides that the Fund “shall act as a centre for the collection and exchange of information on monetary and financial problems, thus facilitating the preparation of studies designed to assist members in developing policies which further the purposes of the Fund.”

    The present volume is published by the Fund in line with these objectives. The editor of the volume, Mr. Robert C. Effros, is eminently qualified for this task. He has brought to the work the unique expertise that he has acquired since he joined the Fund’s staff in 1963 and during the many years that he has been the member of the Legal Department responsible for central banking, commercial banking, and related legislation. It is hoped that the volume will be useful to government officials, bankers, lawyers, and others concerned with this subject.

    December 1982

    George P. Nicoletopoulos

    Director, Legal Department

    International Monetary Fund

    CONTENTS

    INTRODUCTION

    The subject of this volume is the legal and institutional framework of the financial systems of seven developing societies. The entries have been selected with certain criteria in mind. Each is a burgeoning financial center. Countries from a number of different geographical areas, embodying distinct legal and social traditions, have been included for purposes of comparison.

    While each is a success in its own right as a developing financial center, not every one is at the same stage of development. Nor is each invested with the same degree of international or regional significance. Some, like Hong Kong, Singapore, and Panama, have an effect well beyond their boundaries, while the importance of others, such as Kenya, is, as yet, largely national. The common feature of each, which sets it apart from neighboring countries in the area, is the sophistication and development of its financial institutions. In each, banks, insurance companies, specialized financial institutions, securities brokers, and the like, both local and foreign, offer a wide range of services to residents, and often to nonresidents as well.

    The format for each entry commences with an essay to provide background and explanation concerning the financial system. This is followed by the monetary, central bank, and general banking laws. The entry concludes with selected laws of the main specialized financial institutions and any securities regulation laws that have been enacted.

    An examination of the history and development of each financial center reveals numerous accidental circumstances and diverse causation. It would be astonishing if it were otherwise. The centers are scattered geographically, derive from dissimilar cultures, depend on different economic bases, and are politically heterogeneous.

    Despite their obvious differences, these centers have had to confront certain common problems. Their evident success in dealing with similar challenges suggests that there may be some degree of commonality in their legislation and their experience. In searching for general principles, one must be careful not to expect identical solutions but rather to explore for similar treatment. The similarity, moreover, is likely to be greatest among those financial centers that have evolved furthest. To the extent that the centers have acquired international significance, it is likely that they will reflect more uniformity. This tendency may be expected insofar as such centers, in competition with one another and judged against more established international financial centers, must satisfy more rigorous criteria than those that reflect only the needs of the local banking system. In the final analysis, however, the laws and experience of each of the centers must be read on their own. Moreover, they must be read in the context of rapidly changing circumstances.

    I should like to express my thanks to the writers of the introductory essays that provide indispensable background and explanation for the legislation of each of the financial centers included in this volume. My gratitude is also due to Miss O. Mary Price whose expert editorial assistance has been invaluable; to Mr. Norman Humphreys and Mr. Augustus Hooke whose patience and encouragement have been notable; to Mr. A. Touami for his able research assistance; and to Mrs. Alice Penalosa, my secretary, for her unfailing enthusiasm and technical competence in the preparation of this volume. I am also indebted to Mr. George Nicoletopoulos and Sir Joseph Gold, present and past Directors of the Legal Department, for the opportunity they have given me to undertake this work. I am beholden to correspondents in each of the financial centers and to the relevant financial authorities, each of whom has generously cooperated in this effort. Thanks are also due to the translators in the Bureau of Language Services who have faithfully rendered a number of pieces of complex legislation into English. The Graphics Section helped in many ways with the production process; the covers were designed by Mr. Hordur Karlsson. Finally, I am indebted to my wife and family for the support that they have given to me during the course of the work.

    December 1982

    Robert C. Effros

      You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

      Other Resources Citing This Publication