Back Matter

Back Matter

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
April 2004
    Share
    • ShareShare
    Show Summary Details
    GlossaryAnnuity

    A contract that provides an income for a specified period of time, such as a number of years or for life.

    Asset/liability management

    The management of assets to ensure that liabilities are sufficiently covered by suitable assets at all times.

    Balance sheet mismatch

    A balance sheet is a financial statement showing a company’s assets, liabilities, and equity on a given date. Typically, a mismatch in a balance sheet implies that the maturities of the liabilities differ (are typically shorter) from those of the assets and/or that some liabilities are denominated in a foreign currency while the assets are not.

    Banking soundness

    The financial health of a single bank or of a country’s banking system.

    Benchmark issues

    High-quality debt securities, typically bonds. Investors use their yield for comparison purposes and to price other bond issues.

    Brady Bonds

    Bonds issued by emerging market countries as part of a restructuring of defaulted commercial bank loans. These bonds are named after former U.S. Treasury Secretary Nicholas Brady and the first bonds were issued in March of 1990.

    Capital account liberalization

    Removal of statutory restrictions on cross-border private capital flows, an important part of financial liberalization. In particular, the relaxation of controls or prohibitions on transactions in the capital and financial accounts of the balance of payments, including the removal of foreign exchange convertibility restrictions.

    Carry trade

    A leveraged transaction in which borrowed funds are used to buy a security whose yield is expected to exceed the cost of the borrowed funds.

    Cash securitization

    The creation of securities from a pool of pre-existing assets and receivables that are placed under the legal control of investors through a special intermediary created for this purpose. This compares with a “synthetic” securitization where the generic securities are created out of derivative instruments.

    Collective action clause

    A clause in bond contracts that includes provisions allowing a qualified majority of lenders to amend key financial terms of the debt contract and bind a minority to accept these new terms.

    Contagion

    The transmission or spillover of financial shocks or crises across countries and/or across asset classes, characterized by an apparent increase in the comovement of asset prices.

    Convergence fund

    A fund that invests in Eastern European countries’ debt securities on the assumption that interest rates in these countries will converge to those in the European Union.

    Convexity

    A measure of the relationship between bond prices and bond yields. The more positive a bond’s convexity, the less sensitive is the price of the bond to interest rate changes, other things being equal. Negative convexity implies the bond’s price is more sensitive to interest rate changes, other things being equal.

    Corporate governance

    The governing relationships between all the stakeholders in a company—including the shareholders, directors, and management—as defined by the corporate charter, bylaws, formal policy, and rule of law.

    Credit default swap

    A financial contract under which an agent buys protection against credit risk for a periodic fee in return for a payment by the protection seller contingent on the occurrence of a credit/default event.

    Credit insurance

    A form of guarantee to manufacturers and wholesalers against loss resulting from default on the part of debtors.

    Credit risk

    The risk that a counterparty to the insurer is unable or unwilling to meet its obligations causing a financial loss to the insurer.

    Credit spreads

    The spread between sovereign benchmark securities and other debt securities that are comparable in all respects except for credit quality (e.g., the difference between yields on U.S. Treasuries and those on single A-rated corporate bonds of a certain term to maturity).

    Defined benefit pensions

    A retirement pension plan where the benefits that retirees receive are determined by such factors as salary history and the duration of employment. The company is typically responsible for the investment risk and portfolio management.

    Defined contribution pensions

    A retirement pension plan where the benefits that retirees receive are determined by the returns on the plan’s investments.

    Derivatives

    Financial contracts whose value derives from underlying securities prices, interest rates, foreign exchange rates, market indexes, or commodity prices.

    Dollarization

    The widespread domestic use of another country’s currency (typically the U.S. dollar) to perform the standard functions of money—that of a unit of account, medium of exchange, and store of value.

    Double gearing

    Situations where multiple companies use shared capital to protect against risk occurring in separate entities. For example, an insurance company may purchase shares in a bank as a reciprocal arrangement for loans. In these cases, both institutions are leveraging their exposure to risk.

    Dynamic hedging

    A dynamic-hedging scheme involves the periodic re-balancing of a portfolio of hedging instruments (the buying or selling of securities) in order to maintain a specific hedging level.

    Eligible capital

    On- or off-balance sheet element that, in accordance with domestic regulations, is suitable to cover the required solvency margin (i.e., eligible for inclusion in the calculation of available solvency or regulatory capital). As a general rule, these elements are either assets free of all foreseeable liabilities, or, if they represent liabilities, the latter should be subordinated to any other liabilities, i.e., in the event of a bankruptcy, they are to be paid only after the claims of all other creditors have been satisfied.

    EMBI

    The acronym for the J.P. Morgan Emerging Market Bond Index that tracks the total returns for traded external debt instruments in the emerging markets.

    Emerging markets

    Developing countries’ financial markets that are less than fully developed, but are nonetheless broadly accessible to foreign investors.

    Financial guarantee insurance

    A form of coverage in which the insurer guarantees the payment of interest and/or principal of the insured in connection with debt instruments issued by the insured.

    Foreign direct investment

    The acquisition abroad (i.e., outside the home country) of physical assets, such as plant and equipment, or of a controlling stake (usually greater than 10 percent of shareholdings).

    Forward price-earnings ratio

    The multiple of future expected earnings at which a stock sells. It is calculated by dividing the current stock price (adjusted for stock splits) by the estimated earnings per share for a future period (typically the next 12 months).

    Hedge funds

    Investment pools, typically organized as private partnerships and often resident offshore for tax and regulatory purposes. These funds face few restrictions on their portfolios and transactions. Consequently, they are free to use a variety of investment techniques—including short positions, transactions in derivatives, and leverage—to raise returns and cushion risk.

    Hedging

    Offsetting an existing risk exposure by taking an opposite position in the same or a similar risk, for example, by buying derivatives contracts.

    In-force business

    In the life insurance industry, the expression refers to the stock of existing policies that have been previously written and have not yet matured or been cancelled.

    Interest rate swaps

    An agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount. For example, one party will make fixed-rate and receive variable-rate interest payments.

    Intermediation

    The process of transferring funds from the ultimate source to the ultimate user. A financial institution, such as a bank, intermediates credit when it obtains money from depositors and relends it to borrowers.

    Investment-grade issues (Sub-investment-grade issues)

    A bond that is assigned a rating in the top four categories by commercial credit rating agencies. S&P classifies investmentgrade bonds as BBB or higher, and Moody’s classifies investment grade bonds as Baa or higher. (Sub-investment-grade bond issues are rated bonds that are below investment-grade.)

    Leverage

    The proportion of debt to equity. Leverage can be built up by borrowing (on-balance-sheet leverage, commonly measured by debt-to-equity ratios) or by using off-balance-sheet transactions.

    Mark-to-market

    The valuation of a position or portfolio by reference to the most recent price at which a financial instrument can be bought or sold in normal volumes. The mark-to-market value might equal the current market value—as opposed to historic accounting or book value—or the present value of expected future cash flows.

    Mutual insurance company

    A nonprofit insurance carrier, without capital stock, that is owned by the policyholders.

    Nonperforming loans

    Loans that are in default or close to being in default (i.e., typically past due for 90 days or more).

    Offshore instruments

    Securities issued outside of national boundaries.

    (Pair-wise) correlations

    A statistical measure of the degree to which the movements of two variables (for example, asset returns) are related.

    Pension funding gaps

    The difference between the discounted value of accumulating future pension obligations and the present value of investment assets.

    Policy reserves

    The amounts that a life insurance company allocates specifically for the fulfillment of its policy obligations: reserves are so calculated that, together with future premiums and interest earnings, they will enable the company to pay all future claims.

    Primary market

    The market where a newly issued security is first offered/sold to the public.

    Put (call) option

    A financial contract that gives the buyer the right, but not the obligation, to sell (buy) a financial instrument at a set price on or before a given date.

    Reinsurance

    Insurance placed by an underwriter in another company to cut down the amount of the risk assumed under the original insurance.

    Reserve

    Amounts of an insurance company’s funds that are set aside to meet unforeseeable liabilities (i.e., an obligation that has not yet materialized) or statutory requirements. These amounts stem either from shareholders’ capital or, in the case of mutual companies, members’ contributions and accumulated surplus.

    Retrenchment from risk

    A reduction in the purchases or holdings of risky securities.

    Risk aversion

    The degree to which an investor who, when faced with two investments with the same expected return but different risk, prefers the one with the lower risk. That is, it measures an investor’s aversion to uncertain outcomes or payoffs.

    Secondary markets

    Markets in which securities are traded after they are initially offered/sold in the primary market.

    Separate account

    Funds held by a life insurer that are segregated from the other assets of the insured and invested for pension plans and other designated policies.

    Solvency

    Narrowly defined as the ability of an insurer to meet its obligations (liabilities) at any time. In order to set a practicable definition, it is necessary to clarify the type of claims covered by the assets, e.g., already written business (run-off basis, break-up basis), or would future new business (going-concern basis) also to be considered. In addition, questions regarding the volume and the nature of an insurance company’s business, the appropriate time horizon to be adopted, and setting an acceptable probability of becoming insolvent are taken into consideration in assessing a company’s solvency.

    Solvency requirements

    The statutory requirements or rules on the required solvency margin and eligible capital elements, including the performance of the solvency test, to prove compliance with these requirements.

    Spread

    See “credit spreads” above (the word credit is sometimes omitted). Other definitions include: (1) the gap between bid and ask prices of a financial instrument; (2) the difference between the price at which an underwriter buys an issue from the issuer and the price at which the underwriter sells it to the public.

    Subordinated debt

    Loans or other liabilities that rank after claims of all other creditors and to be paid, in the event of liquidation or bankruptcy, only after all other debts have been met.

    Swaptions

    Options on interest rate swaps.

    Syndicated loans

    Large loans made jointly by a group of banks to one borrower. Usually, one lead bank takes a small percentage of the loan and partitions (syndicates) the rest to other banks.

    Tail events

    The occurrence of large or extreme security price movements, that, in terms of their probability of occurring, lie within the tail region of the distribution of possible price movements.

    Technical provision

    Amount set aside to meet liabilities arising out of insurance contracts, including claims provision (whether reported or not), provision for unearned premiums, provision for unexpired risks, life assurance provision and other liabilities related to life insurance contracts (e.g., premium deposits, savings accumulated over the term of with-profit policies).

    Underwriting

    The process by which an insurance company determines whether or not and on what basis it will accept an application for insurance.

    Unit-linked investment

    An insurance policy where a portion of the premium is used to purchase insurance protection, and the balance is invested in an authorized unit trust. The return on the policy is linked to the performance of the unit trust and the risk associated with the investment is borne by the policyholder.

    Variable annuity

    An annuity contract under which the amount of each periodic payment fluctuates according to the investment performance of the insurer.

    With-profits policies

    The insurance company guarantees to pay an agreed amount at a specific time in the future, and may increase this guaranteed amount through bonus payments. In effect, the policyholders are participating in the profits of the life insurance company.

    Yield curve

    A chart that plots the yield to maturity at a specific point in time for debt securities having equal credit risk but different maturity dates.

    Note: Insurance terms are adapted from the International Association of Insurance Supervisors (IAIS) Glossary of Terms, September 2003.

    ANNEX SUMMING UP BY THE ACTING CHAIR

    The following remarks by the Acting Chair were made at the conclusion of the Executive Board’s dicussion of the Global Financial Stability Report on March 26, 2004.

    Executive Directors welcomed the continued improvement in international financial market conditions and the brighter prospects for global financial stability going forward. The improved outlook is supported by a firming of the global economic recovery, rising corporate earnings, and a strengthening of corporate balance sheets. Emerging market borrowers, many of whom have taken steps to put their public finances on a sounder footing and improved the structure of their domestic and external debt, are benefiting from higher export demand and commodity prices.

    Global Financial Market Surveillance

    Directors noted that, in response to this improved outlook and the exceptionally low short-term interest rates, global financial markets staged a strong, broad-based rally in 2003. While low short-term interest rates are continuing to influence investor behavior and are in some cases encouraging increased risk taking in a search for yield, most mature and emerging market indices appear recently to be pointing to a period of consolidation, with investors showing renewed caution and increased discrimination.

    Directors emphasized that the improved outlook for financial stability is not without risks. These risks will require continued vigilant monitoring, not least in view of their interconnected nature. A first set of issues, discussed by Directors, arises from the environment of prolonged low interest rates and abundant liquidity. In this environment, asset valuations may be pushed beyond levels justified by fundamental improvements. A transition to higher interest rates in mature markets will eventually need to take place. This may have broader ramifications, including increased bond market volatility if investors were to revise their interest rate outlook abruptly—as they did during the 1994 sell-off in global fixed income markets—or if asset valuations that were predicated on an unusually low level of risk-free rates were corrected abruptly. To guard against these risks, Directors encouraged policymakers to develop timely and forward-looking communication strategies that encourage investors to base their decisions on fundamentals rather than on the expectation that interest rates will be kept indefinitely at very low levels. Directors noted that the potential effects of higher interest rates on emerging market economies are being mitigated due to the progress that many of them have made in reducing vulnerabilities, while stronger world growth will also help offset the impact of higher interest rates.

    Directors also discussed the potential for market instability arising from the large global external imbalances, including the possibility that adverse developments in the currency markets might spill over into other asset markets. They noted that the depreciation of the U.S. dollar against other major currencies has so far been orderly. Most Directors considered that, in view of the substantial capital flows that the U.S. economy will continue to need to attract, the risk of a pronounced currency depreciation—possibly resulting in higher U.S. dollar interest rates and a correction in asset valuations—can nevertheless not be dismissed. Directors reiterated, in this context, that a strong and sustained cooperative effort—aimed at ensuring a smooth adjustment of global imbalances over the medium term—will remain a key policy priority for the international community in the period ahead.

    Directors welcomed the improved external financing environment for emerging market borrowers. They noted that the improved credit quality of many emerging market borrowers and low interest rates in the major financial centers contributed to the impressive compression of spreads on emerging market bonds last year. Directors commended the steps taken by many emerging markets in the current favorable market environment to meet a substantial part of their borrowing needs, improve their debt structures, and extend maturities. The correction of the downward exchange rate over-shooting that occurred in 2003 in many Latin American economies should further help enhance debt sustainability in these countries. Directors also welcomed the trend toward making the inclusion of collective action clauses (CACs) in sovereign bond issues an industry standard. Notwithstanding this encouraging aggregate performance, Directors noted that some countries appear to have relaxed their fiscal and structural reform efforts. Unless they take timely corrective action, these countries face a heightened risk of exposing their underlying vulnerabilities in the event of a turnaround in the current favorable external financing environment.

    Directors welcomed the continued strengthening of the balance sheets of the household, corporate, and bank sectors over the course of 2003, as corporate and household sectors continued to build up liquidity and rising asset values strengthened net worth. Nevertheless, rising interest rates may increase the debt service burden, particularly in a number of European countries where debt levels of the corporate sector remain high. Directors noted that the recent fall in long-term yields has increased refinancing activity in the U.S. mortgage market and reopened the possibility of hedging activity that might amplify yield movements. They welcomed, in this context, recent proposals to strengthen the regulation of the U.S. mortgage agencies and address the implicit government guarantee.

    Directors emphasized that the relatively benign overall conditions in mature and emerging markets provide an advantageous window of opportunity to focus policy attention on several key structural reforms to underpin financial stability over the longer run. In mature markets, recent scandals in the mutual funds industry and some companies, such as Parmalat, have again underscored the need to build on ongoing efforts to improve corporate governance and strengthen market foundations. In particular, steps should be taken to strengthen scrutiny by investors and regulators of firms with complex ownership and capital structures, as well as to enhance public oversight of auditing practices. Priorities on emerging countries’ agenda going forward should include further reductions in the level and vulnerability of public debt, development of local capital markets, and continued strong efforts to improve the climate for foreign direct investment, which has remained at disappointingly low levels in spite of the general rebound in capital flows.

    Risk Transfer and the Insurance Industry

    Directors welcomed the work being undertaken in the context of the current and forthcoming issues of the GFSR on the range of regulatory and disclosure issues raised by the transfer of risk from banking to nonbanking institutions in mature markets. A prominent example is the rapid growth of the hedge fund sector where, despite closer counterparty and investor monitoring, there appears to be a need for broader and more systematic transparency of exposures and practices. Directors noted that future staff work will focus on the hedge fund and pension fund industries.

    Directors welcomed the conclusion of the staff’s analysis that the reallocation of credit risk to the insurance sector, together with improvements in risk management in the sector, appears to have contributed to enhanced overall financial stability. Moreover, by allocating a greater share of their portfolio to credit instruments, many life insurers avail themselves of a more predictable return. While the investment in credit instruments by insurers deserves to be supported, Directors stressed that this will need to go hand in hand with continued efforts to improve risk management and regulatory oversight of the sector. Areas for improvement highlighted by Directors include: wider implementation of risk-based capital standards by regulators; enhancement of supervisory resources in many mature market jurisdictions; increased information sharing among supervisors; and strengthened disclosure requirements. Directors welcomed the current debate on international accounting standards for insurers, and looked forward to the development of converging standards that provide an accurate reflection of insurance companies’ financial position. To be adequate, disclosure should be comprehensive, and include information on sensitivities and risks. While rating agencies play a helpful role in disseminating information on risks, Directors cautioned that they should not be relied upon as a substitute for appropriate supervision.

    Institutional Investors in Emerging Markets

    Directors welcomed the discussion of the institutional investor base for claims on emerging markets. They saw the development of a stable investor base as a key element in reducing the volatility of capital flows to emerging markets. While ongoing changes are contributing to a welcome broadening and diversification of the investor base, Directors observed that the decline in dedicated, relative to crossover, investors may also have increased the volatility of capital flows. Another source of potential volatility arises from the impact that even small changes in the portfolio positions of institutional investors can have on emerging markets, given the large size of the assets under management of these investors. Directors agreed that the factors influencing the changing nature of the investor base, as well as their policy implications—including for debt management policies and practices in emerging markets—will require continued careful analysis. They emphasized the importance of adequate transparency and disclosure regarding both government policies and corporate developments, with investor relations programs being a particularly useful instrument. In addition, the development of an efficient market infrastructure within emerging markets will be helpful in attracting institutional investors from both mature and domestic markets.

    Directors also commented on the supervisory and regulatory implications of the expanding portfolios of nonbank institutional investors in emerging markets, in particular the rapid growth of pension funds. They noted that, in view of the growing imbalance between the assets under management of these funds and the available securities, close coordination will be required between changes in the regulatory framework, the development of local capital markets, and the gradual easing of limits on foreign investments by pension funds to increase their opportunities for portfolio diversification. Directors viewed the development of local securities markets as key to ensuring proper risk management by the insurance industry. In view of the rapid growth and increasing sophistication of the activities of local institutional investors involved in both local and international markets, it will also be important to persevere with strong efforts to enhance the risk management skills of both investors and regulators.

    STATISTICAL APPENDIX

    This statistical appendix presents data on financial developments in key financial centers and emerging markets. It is designed to complement the analysis in the text by providing additional data that describe key aspects of financial market developments. These data are derived from a number of sources external to the IMF, including banks, commercial data providers, and official sources, and are presented for information purposes only; the IMF does not, however, guarantee the accuracy of the data from external sources.

    Presenting financial market data in one location and in a fixed set of tables and charts, in this and future issues of the GFSR, is intended to give the reader an overview of developments in global financial markets. Unless otherwise noted, the statistical appendix reflects information available up to March 2, 2004.

    Mirroring the structure of the chapters of the report, the appendix presents data separately for key financial centers and emerging market countries. Specifically, it is organized into three sections:

    • Figures 114 and Tables 19 contain information on market developments in key financial centers. This includes data on global capital flows, and on markets for foreign exchange, bonds, equities, and derivatives, as well as sectoral balance sheet data for the United States, Japan, and Europe.

    • Figures 15 and 16 and Tables 1021 present information on financial developments in emerging markets, including data on equity, foreign exchange, and bond markets, as well as data on emerging market financing flows.

    • Tables 2228 report key financial soundness indicators for selected countries, including bank profitability, asset quality, and capital adequacy.

    List of Tables and Figures

    Emerging Markets

    Financial Soundness Indicators

    22. Bank Regulatory Capital to Risk-Weighted Assets

    23. Bank Capital to Assets

    24. Bank Nonperforming Loans to Total Loans

    25. Bank Provisions to Nonperforming Loans

    26. Bank Return on Assets

    27. Bank Return on Equity

    28. Moody’s Weighted Average Bank Financial Strength Index

    Figure 1.Global Capital Flows: Sources and Uses of Global Capital in 2003

    Source: International Monetary Fund, World Economic Outlook database as of March 11, 2004.

    1As measured by countries’ current (capital) account surplus (deficit).

    2Other countries include all countries with shares of total surplus less than 2.3 percent.

    3As measured by countries’ current (capital) account deficit (surplus).

    4Other countries include all countries with shares of total deficit less than 1.5 percent.

    Figure 2.Exchange Rates: Selected Major Industrial Countries

    Sources: Bloomberg L.P.; and the IMF Competitive Indicators System.

    Note: In each panel, the effective and bilateral exchange rates are scaled so that an upward movement implies an appreciation of the respective local currency.

    1Local currency units per U.S. dollar except for the euro area and the United Kingdom, for which data are shown as U.S. dollars per local currency.

    21995 = 100; constructed using 1989–91 trade weights.

    Figure 3.United States: Yields on Corporate and Treasury Bonds

    (Weekly data)

    Sources: Bloomberg L.P.; and Merrill Lynch.

    Figure 4.Selected Spreads

    (In basis points)

    Sources: Bloomberg L.P.; and Merrill Lynch.

    1Spreads over 10-year U.S. treasury bond; weekly data.

    2Spread between yields on three-month U.S. treasury repo and on three-month U.S. treasury bill.

    3Spread between yields on 90-day investment-grade commercial paper and on three-month U.S. treasury bill.

    4Spread between three-month U.S. dollar LIBOR and yield on three-month U.S. treasury bill.

    5Spread over 10-year government bond.

    Figure 5.Nonfinancial Corporate Credit Spreads

    (In basis points)

    Source: Merrill Lynch.

    Figure 6.Equity Markets: Price Indexes

    (January 1, 1990 = 100; weekly data)

    Source: Datastream.

    Figure 7.Implied and Historical Volatility in Equity Markets

    Sources: Bloomberg L.P.; and IMF staff estimates.

    Note: Implied volatility is a measure of the equity price variability implied by the market prices of call options on equity futures. Historical volatility is calculated as a rolling 100-day annualized standard deviation of equity price changes. Volatilities are expressed in percent rate of change.

    1VIX is the Chicago Board Options Exchange volatility index. This index is calculated by taking a weighted average of implied volatility for the eight S&P 500 calls and puts.

    Figure 8.Historical Volatility of Government Bond Yields and Bond Returns for Selected Countries1

    Sources: Bloomberg L.P.; and Datastream.

    1Volatility calculated as a roiling 100-day annualized standard deviation of changes in yield and returns on 10-year government bonds. Returns are based on 10-plus year government bond indexes.

    Figure 9.Twelve-Month Forward Price/Earnings Ratios

    Source: I/B/E/S.

    Figure 10.Flows into U.S.-Based Equity Funds

    Sources: AMG Data Services; Investment Company Institute; and Datastream.

    1In billions of U.S. dollars.

    Figure 11.United States: Corporate Bond Market

    Sources: Board of Governors of the Federal Reserve System; and Bloomberg L.P.

    1Spread against yield on 10-year U.S. government bonds.

    Figure 12.Europe: Corporate Bond Market1

    Sources: Bondware; and Datastream.

    1Nonfinancial corporate bonds.

    2Spread between yields on a Merrill Lynch High Yield European Issuers Index bond and a 10-year German government benchmark bond.

    Figure 13.United States: Commercial Paper Market1

    Source: Board of Governors of the Federal Reserve System.

    1Nonfinancial commercial paper.

    2Difference between 30-day A2/P2 and AA commercial paper.

    Figure 14.United States: Asset-Backed Securities

    Sources: Merrill Lynch; Datastream; and the Bond Market Association.

    1Merrill Lynch AAA Asset-Backed Master Index (fixed rate) option-adjusted spread.

    2Collateralized bond/debt obligations.

    Table 1.Global Capital Flows: Inflows and Outflows1(In billions of U.S. dollars)
    InflowsOutflows
    1992199319941995199619971998199920002001200219921993199419951996199719981999200020012002
    United States
    Direct investment19.851.446.157.886.5105.6179.0289.4321.3151.639.6-48.3-84.0-80.2-98.8-91.9-104.8-142.6-224.9-159.2-120.0-137.8
    Portfolio investment72.0111.0139.4210.4332.8333.1187.6285.6420.0425.1421.4-49.2-146.2-60.3-122.5-149.8-119.0-124.2-116.2-121.9-84.615.8
    Other investment78.9119.7120.5170.4131.8268.157.0165.2284.9188.9245.919.131.0-40.9-121.4-178.9-262.8-74.2-171.2-288.4-140.4-53.3
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.3.9-1.45.3-9.76.7-1.0-6.78.7-0.3-4.9-3.7
    Total capital flows170.7282.1306.0438.6551.1706.8423.6740.21,026.1765.5707.0-74.4-200.5-176.1-352.4-413.9-487.6-347.8-503.7-569.8-350.0-179.0
    Canada
    Direct investment4.84.78.29.39.611.522.724.866.128.820.5-3.5-5.7-9.3-11.5-13.1-23.1-34.1-17.3-46.4-36.8-28.9
    Portfolio investment20.541.417.218.413.711.716.62.710.122.213.5-9.8-13.8-6.6-5.3-14.2-8.6-15.1-15.6-42.9-24.4-15.8
    Other investment-2.2-6.716.0-3.915.728.05.4-10.80.67.46.0-3.5-0.4-20.4-8.3-21.1-16.29.410.2-4.2-10.2-6.9
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.4.8-0.90.4-2.7-5.52.4-5.0-5.9-3.7-2.20.2
    Total capital flows23.139.441.423.939.151.244.816.676.858.439.9-12.1-20.8-35.9-27.9-53.9-45.4-44.8-28.5-97.3-73.5-51.4
    Japan
    Direct investment2.80.10.90.00.23.23.312.38.26.29.1-17.4-13.8-18.1-22.5-23.4-26.1-24.6-22.3-31.5-38.5-32.0
    Portfolio investment9.6-6.164.559.866.879.256.1126.947.460.5-20.0-34.0-63.7-92.0-86.0-100.6-47.1-95.2-154.4-83.4-106.8-85.9
    Other investment-105.2-32.7-5.697.331.168.0-93.3-265.1-10.2-17.626.646.615.1-35.1-102.25.2-192.037.9266.3-4.146.636.4
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-0.6-27.5-25.3-58.6-35.1-6.66.2-76.3-49.0-40.5-46.1
    Total capital flows-92.9-38.759.8157.198.1150.4-34.0-125.945.449.115.7-5.4-90.0-170.4-269.4-154.0-271.6-75.813.4-168.0-139.2-127.7
    United Kingdom
    Direct investment16.616.510.721.727.437.474.789.5119.962.028.2-19.7-27.3-34.9-45.3-34.8-62.4-122.1-201.6-266.2-68.2-7.5
    Portfolio investment16.243.647.058.868.043.535.3185.5255.158.592.1-49.3-133.631.5-61.7-93.1-85.0-53.0-34.2-97.7-124.22.5
    Other investment96.4191.4-10.8106.2254.4328.497.279.7423.2332.281.4-60.5-68.5-42.4-74.9-215.3-275.9-26.8-94.1-411.5-255.1-202.9
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.2.4-1.3-1.50.90.73.90.31.0-5.34.50.6
    Total capital flows129.1251.646.9186.7349.7409.2207.2354.8798.3452.7201.7-127.0-230.5-47.4-181.0-342.6-419.4-201.6-328.8-780.8-443.0-207.3
    Euro area
    Direct investment212.1403.0181.2132.6-338.5-404.1-272.7-171.2
    Portfolio investment283.4266.3317.2261.9-331.1-383.8-258.5-160.7
    Other investment208.3337.2240.754.7-34.5-166.2-243.5-201.6
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.11.616.216.9-2.6
    Total capital flows703.81,006.5739.1449.3-692.5-937.9-757.8-536.0
    Emerging markets and developing countries2
    Direct investment48.671.697.5128.2147.5184.2177.5209.5204.3221.4172.6-9.9-17.9-16.9-26.4-31.6-39.2-22.8-29.6-35.8-30.1-29.9
    Portfolio investment52.193.593.335.4106.781.940.5127.581.64.9-15.6-2.02.0-1.3-12.4-27.3-28.2-6.4-69.1-76.7-104.8-83.7
    Other investment70.540.514.3128.159.080.020.8-77.4-51.2-34.954.9-19.2-2.7-38.6-13.0-48.0-77.7-82.4-70.5-93.3-11.1-38.2
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-58.4-64.0-68.8-131.4-90.7-95.7-43.0-94.6-117.4-112.5-200.9
    Total capital flows171.3205.6205.0291.6313.1346.1238.9259.6234.7191.5211.9-89.5-82.6-125.5-183.2-197.5-240.8-154.7-263.9-323.1-258.5-352.7
    Sources: IMF, World Economic Outlook database as of March 11, 2004; and International Financial Statistics.

    The total net capital flows are the sum of direct investment, portfolio investment, other investment flows, and reserve assets. “Other investment” includes bank loans and deposits.

    This aggregate comprises the group of Other Emerging Market and Developing Countries defined in the World Economic Outlook, together with Hong Kong SAR, Israel, Korea, Singapore, and Taiwan Province of China.

    Table 2.Global Capital Flows: Amounts Outstanding and Net Issues of International Debt Securities by Currency of Issue and Announced International Syndicated Credit Facilities by Nationality of Borrower(In billions of U.S. dollars)
    199519961997199819992000200120022003
    Q1Q2Q3
    Amounts outstanding of international debt securities by currency of issue
    U.S. dollar874.11,113.11,433.41,833.02,357.32,908.03,611.44,047.44,127.64,209.74,351.6
    Japanese yen436.0462.9444.4462.6497.5452.5411.5432.9428.6427.8460.6
    Pound sterling175.6225.7266.7322.4391.1453.1506.4619.1622.8668.1697.4
    Canadian dollar83.276.567.255.556.451.747.651.555.568.473.4
    Swedish krona5.15.14.17.57.27.78.211.112.313.314.5
    Swiss franc178.8151.2138.5153.5135.5132.0123.6159.1164.6168.2175.8
    Euro1742.9832.7848.91,133.91,452.91,770.42,289.93,283.13,608.04,010.04,252.2
    Other53.268.478.884.398.597.2110.4152.1165.5184.0192.4
    Total2,548.92,935.63,282.04,052.74,996.45,872.67,109.08,756.39,184.99,749.510,217.9
    Net issues of international debt securities by currency of issue
    U.S. dollar65.8238.8320.3399.7399.7524.4550.6435.980.282.1141.9
    Japanese yen75.081.734.0-33.0-33.0-23.510.9-17.9-3.5-1.8-3.1
    Pound sterling6.730.846.453.953.977.892.552.316.517.021.6
    Canadian dollar-2.2-6.5-6.2-7.5-7.5-2.3-2.73.50.18.14.6
    Swedish krona-0.10.2-0.43.63.60.11.21.10.90.20.6
    Swiss franc-0.3-1.3-1.66.36.34.0-0.28.01.54.23.0
    Euro72.3140.0130.2214.6214.6508.4423.8493.5194.1223.3158.7
    Other14.113.323.28.98.914.79.130.810.210.64.5
    Total231.3497.0545.9646.5646.51,103.61,085.21,007.2300.0343.7331.8
    Announced international syndicated credit facilities by nationality of borrower
    All countries703.3839.31,080.6905.31,025.81,464.91,388.81,299.7233.2377.4276.6
    Industrial countries610.2732.0903.6819.4960.01,328.61,276.61,200.7214.1352.5247.5
    Of which:
    United States383.7482.2606.2574.9623.5804.5850.7736.5133.9188.9119.7
    Japan3.56.86.111.415.417.523.819.54.91.95.9
    Germany22.217.623.615.534.042.435.885.26.127.537.0
    France20.523.338.719.833.772.950.163.920.521.010.0
    Italy15.55.910.16.216.135.336.022.91.715.114.3
    United Kingdom56.868.4101.379.8108.5131.2105.7110.418.040.723.0
    Canada22.425.738.241.422.838.440.635.18.34.910.7
    Source: Bank for International Settlements.

    For 1995–98, the euro includes euro area currencies.

    Table 3.Selected Indicators on the Size of the Capital Markets, 2002(In billions of U.S. dollars unless otherwise noted)
    GDPTotal Reserves Minus Gold1Stock Market CapitalizationDebt SecuritiesBank Assets2Bonds, Equities, and Bank Assets3Bonds, Equities, and Bank Assets3 (In percent of GDP)
    PublicPrivateTotal
    World32,197.42,513.922,809.616,564.827,005.443,570.240,063.2106,443.0330.8
    European Union8,656.7289.15,734.34,930.97,891.412,822.317,645.936,202.5418.4
    Euro area6,678.1207.93,677.74,226.16,000.410,226.512,839.027,040.7405.3
    North America11,216.8104.911,625.85,033.014,823.319,856.36,989.638,471.7344.0
    Canada736.037.0570.2499.6307.4807.01,100.22,477.4336.6
    United States10,480.868.011,055.64,533.414,515.919,049.35,889.435,994.3344.6
    Japan3,973.3461.22,095.54,841.92,072.76,914.66,212.115,222.2381.9
    Memorandum items:
    EU countries
    Austria206.19.733.6156.3152.6308.9278.8621.3303.5
    Belgium245.411.9138.7304.0256.4560.41,000.91,700.0690.6
    Denmark172.427.076.7100.0238.2338.2425.9840.8486.2
    Finland131.99.3138.882.152.7134.8297.4571.0435.4
    France1,438.428.41,025.6780.71,151.31,932.03,161.76,119.3425.7
    Germany1,992.351.2686.0860.22,348.03,208.22,969.66,863.8344.5
    Greece133.48.166.0161.211.8173.0175.9414.9311.4
    Ireland122.15.459.930.772.9103.6495.9659.4540.0
    Italy1,188.028.6477.11,208.3822.82,031.11,789.44,297.5361.8
    Luxembourg21.10.224.60.027.027.0529.4580.92,820.4
    Netherlands419.89.6518.6198.4669.3867.71,345.12,731.4650.7
    Portugal122.311.247.279.782.0161.7174.5383.4314.1
    Spain657.334.5461.6364.5353.6718.1918.02,097.7320.2
    Sweden240.614.9179.1130.7207.2337.9359.4876.5364.7
    United Kingdom1,565.739.41,800.7474.11,445.61,919.73,724.27,444.5475.2
    Emerging market countries7,415.91,531.32,525.01,511.81,062.02,573.86,980.412,079.3162.8
    Of which:
    Asia3,429.4975.91,965.7706.4820.91,527.34,911.48,404.5242.2
    Latin America1,658.5161.0308.5464.6178.4643.0773.91,725.4105.2
    Middle East737.2132.552.55.413.518.9598.5669.973.4
    Africa450.372.9116.547.720.868.5315.3500.4112.1
    Europe1,140.5189.181.7287.728.4316.1381.3779.181.8
    Sources: World Federation of Exchanges; Bank for International Settlements; International Monetary Fund, International Financial Statistics (IFS) and World Economic Outlook database as of March 11, 2004; and ©2003 Bureau van Dijk Electronic Publishing-Bankscope.

    Data are from IFS. For United Kingdom, excludes the assets of the Bank of England.

    Assets of commercial banks.

    Sum of the stock market capitalization, debt securities, and bank assets.

    Table 4.Global Over-the-Counter Derivatives Markets: Notional Amounts and Gross Market Values of Outstanding Contracts1(In billions of U.S. dollars)
    Notional AmountsGross Market Values
    End-June 2001End-Dec. 2001End-June 2002End-Dec. 2002End-June 2003End-June 2001End-Dec. 2001End-June 2002End-Dec. 2002End-June 2003
    Total99,755111,178127,509141,679169,6783,0453,7884,4506,3607,908
    Foreign exchange16,91016,74818,06818,46022,0887737791,052881996
    Outright forwards and forex swaps10,58210,33610,42610,71912,332395374615468476
    Currency swaps3,8323,9424,2154,5035,159314335340337419
    Options2,4962,4703,4273,2384,59763709776101
    Interest rate267,46577,56889,955101,658121,7991,5732,2102,4674,2665,459
    Forward rate agreements6,5377,7379,1468,79210,2711519192220
    Swaps51,40758,89768,23479,12094,5831,4041,9692,2133,8645,004
    Options9,52110,93312,57513,74616,946154222235381434
    Equity-linked1,8841,8812,2142,3092,799199205243255260
    Forwards and swaps3293203863644884958626167
    Options1,5561,5611,8281,9442,311150147181194193
    Commodity35905987779231,04083757986110
    Gold2032312793153042120282822
    Other3873674986087366256515888
    Forwards and swaps229217290402458
    Options158150208206279
    Other12,90614,38416,49618,33021,9524175196098711,083
    Memorandum items:
    Gross credit exposure4n.a.n.a.n.a.n.a.n.a.1,0191,1711,3171,5111,750
    Exchange-traded derivatives16,91016,74818,06818,46022,088
    Source: Bank for International Settlements.

    All figures are adjusted for double-counting. Notional amounts outstanding have been adjusted by halving positions vis-à-vis other reporting dealers. Gross market values have been calculated as the sum of the total gross positive market value of contracts and the absolute value of the gross negative market value of contracts with non-reporting counterparties.

    Single-currency contracts only.

    Adjustments for double-counting are estimated.

    Gross market values after taking into account legally enforceable bilateral netting agreements.

    Table 5.Global Over-the-Counter Derivatives Markets: Notional Amounts and Gross Market Values of Outstanding Contracts by Counterparty, Remaining Maturity, and Currency1(In billions of U.S. dollars)
    Notional AmountsGross Market Values
    End-June 2001End-Dec. 2001End-June 2002End-Dec. 2002End-June 2003End-June 2001End-Dec. 2001End-June 2002End-Dec. 2002End-June 2003
    Total99,755111,178127,509141,679169,6783,0453,7884,4506,3607,908
    Foreign exchange16,91016,74818,06818,46022,0887737791,052881996
    By counterparty
    With other reporting dealers5,9075,9126,6026,8457,960229237372285284
    With other financial institutions7,2876,7557,2107,6028,955334319421377427
    With non-financial customers3,7164,0814,2564,0125,172210224259220286
    By remaining maturity
    Up to one year213,01213,42714,40114,53317,561
    One to five years22,8332,3402,5372,7193,128
    Over five years21,0659811,1301,2081,399
    By major currency
    U.S. dollars315,14115,41015,97316,50019,401679704948813891
    Euro36,4256,3687,2977,8189,914322266445429526
    Japanese yen34,2544,1784,4544,7914,907217313254189165
    Pound sterling32,4722,3152,5222,4623,093786911298114
    Other35,5285,2255,8905,3496,861250206345233296
    Interest rate467,46577,56889,955101,658121,7991,5732,2102,4674,2665,459
    By counterparty
    With other reporting dealers32,31935,47243,34046,72253,6227039121,0811,8482,266
    With other financial institutions28,65332,51036,31043,60753,1336839451,0251,8452,482
    With non-financial customers6,4949,58610,30411,32815,044187353361573710
    By remaining maturity
    Up to one year225,60527,88633,67436,93844,927
    One to five years226,30830,56634,43740,13746,646
    Over five years215,55319,11521,84424,58330,226
    By major currency
    U.S. dollar23,08327,42732,17834,39940,1105819521,1271,9172,286
    Euro22,40526,23030,67138,42950,0004616777101,4992,178
    Japanese yen11,27811,79913,43314,65015,270313304326378405
    Pound sterling5,1786,2166,9787,4428,32299148151252315
    Other5,5215,8966,6956,7388,097119129153220275
    Equity-linked1,8841,8812,2142,3092,799199205243255260
    Commodity55905987779231,04083757986110
    Other12,90614,38416,49618,33021,9524175196098711,083
    Source: Bank for International Settlements.

    All figures are adjusted for double-counting. Notional amounts outstanding have been adjusted by halving positions vis-à-vis other reporting dealers. Gross market values have been calculated as the sum of the total gross positive market value of contracts and the absolute value of the gross negative market value of contracts with non-reporting counterparties.

    Residual maturity.

    Counting both currency sides of each foreign exchange transaction means that the currency breakdown sums to twice the aggregate.

    Single-currency contracts only.

    Adjustments for double-counting are estimated.

    Table 6.Exchange-Traded Derivative Financial Instruments: Notional Principal Amounts Outstanding and Annual Turnover
    198619871988198919901991199219931994199519961997199819992000200120022003
    Q1Q2Q3
    (In billions of U.S. dollars)(In billions of U.S. dollars)
    Notional principal amounts outstanding
    Interest rate futures370.0487.7895.41,201.01,454.82,157.42,913.14,960.45,807.65,876.25,979.07,586.78,031.47,924.87,907.89,265.39,950.711,034.113,448.013,035.8
    Interest rate options144.0122.6279.0386.0595.41,069.61,383.82,361.42,623.22,741.83,277.83,639.94,623.53,755.54,734.212,492.811,759.517,622.122,026.923,554.9
    Currency futures10.214.612.116.017.018.326.534.740.433.837.742.331.736.774.465.647.065.971.669.8
    Currency options39.259.548.050.256.562.971.675.955.7120.4133.4118.649.222.421.427.427.429.433.337.7
    Stock market index futures13.517.627.041.169.176.079.8110.0127.7172.2195.7211.3291.5340.3371.5333.9325.5366.2410.8433.3
    Stock market index options37.827.742.770.293.6136.9163.7232.4242.8337.7394.5808.7907.41,510.21,148.31,574.81,700.21,835.42,226.52,396.2
    Total614.8729.71,304.11,764.52,286.43,521.24,638.57,774.98,897.39,282.010,017.912,407.513,934.713,589.914,257.723,759.923,810.330,953.138,217.139,527.7
    North America514.6577.8951.31,153.51,264.42,153.02,698.74,360.74,823.64,852.44,841.06,348.37,355.16,930.68,167.916,198.913,688.916,895.821,639.820,497.7
    Europe13.113.3177.4250.9461.4710.71,114.41,777.91,831.82,241.32,828.13,587.44,397.14,008.54,197.46,141.38,800.412,787.415,091.217,284.3
    Asia-Pacific87.0138.5175.5360.1560.5657.0823.51,606.02,171.81,990.22,154.02,235.71,882.52,401.31,606.21,308.41,191.71,122.51,310.51,558.1
    Other0.10.10.00.00.10.51.930.370.1198.1194.8236.1300.0249.5286.2111.3129.3147.4175.6187.6
    (In millions of contracts traded)(In millions of contracts traded)
    Annual turnover
    Interest rate futures91.0145.7156.4201.0219.1230.9330.1427.0628.5561.0612.2701.6760.0672.7781.21,057.51,147.9368.5421.9404.8
    Interest rate options22.229.330.539.552.050.864.882.9116.6225.5151.1116.7129.6117.9107.6199.6240.375.587.276.6
    Currency futures19.921.222.528.229.730.031.339.069.899.673.673.554.637.243.649.142.713.315.914.0
    Currency options13.018.318.220.718.922.923.423.721.323.326.321.112.16.87.110.516.13.53.34.0
    Stock market index futures28.436.129.630.139.454.652.071.2109.0114.893.9115.9178.0204.8225.2337.1530.2174.1172.0175.9
    Stock market index options140.4139.179.1101.7119.1121.4133.9144.1197.6187.3172.3178.2195.1322.5481.41,148.22,235.4751.4809.8763.9
    Total314.9389.6336.3421.2478.2510.4635.6787.91,142.91,211.61,129.31,207.21,329.41,361.91,646.12,801.94,212.71,386.31,510.11,439.3
    North America288.7318.3252.3288.0312.3302.6341.4382.4513.5455.0428.4463.6530.2463.0461.3675.7908.1286.6348.0328.0
    Europe10.335.940.864.383.0110.5185.1263.4398.1354.7391.8482.8525.9604.5718.5957.81,074.8351.7340.1334.1
    Asia-Pacific14.330.034.363.679.185.882.998.5131.7126.4115.9126.8170.9207.8331.3985.12,073.1712.6779.1730.7
    Other1.65.48.95.33.811.526.243.699.6275.5193.2134.0102.486.6135.0183.3156.735.442.946.5
    Source: Bank for International Settlements.
    Table 7.United States: Sectoral Balance Sheets(In percent)
    1996199719981999200020012002
    Corporate sector
    Debt/net worth51.250.350.350.748.351.451.2
    Short-term debt/total debt41.040.540.139.039.834.631.8
    Interest burden110.511.012.713.415.917.817.0
    Household sector
    Net worth/assets84.785.385.586.084.983.681.9
    Equity/total assets25.829.731.435.030.926.520.5
    Equity/financial assets38.142.844.949.245.040.132.8
    Home mortgage debt/total assets10.19.69.59.29.910.912.5
    Consumer credit/total assets3.63.43.33.13.53.84.0
    Total debt/financial assets22.621.220.719.722.024.829.0
    Debt service burden212.012.212.212.512.813.313.3
    Banking sector3
    Credit quality
    Nonperforming loans4/total loans1.01.01.01.01.11.41.5
    Net loan losses/average total loans0.60.70.70.60.71.01.1
    Loan-loss reserve/total loans1.91.81.81.71.71.91.9
    Net charge-offs/total loans0.60.60.70.60.71.01.1
    Capital ratios
    Total risk-based capital12.512.212.212.212.112.712.8
    Tier 1 risk-based capital10.09.69.59.59.49.910.0
    Equity capital/total assets8.28.38.58.48.59.19.2
    Core capital (leverage ratio)7.67.67.57.87.77.88.0
    Profitability measures
    Return on average assets (ROA)1.21.31.31.31.21.21.4
    Return on average equity (ROE)14.815.614.815.714.814.214.9
    Net interest margin4.34.34.04.03.93.94.3
    Efficiency ratio560.859.261.058.758.457.755.8
    Sources: Board of Governors of the Federal Reserve System, Flow of Funds; Department of Commerce, Bureau of Economic Analysis; Federal Deposit Insurance Corporation; and Federal Reserve Bank of St. Louis.

    Ratio of net interest payments to pre-tax income.

    Ratio of debt payments to disposable personal income.

    FDIC-insured commercial banks.

    Loans past due 90+ days and nonaccrual.

    Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income.

    Table 8.Japan: Sectoral Balance Sheets1(In percent)
    FY1996FY1997FY1998FY1999FY2000FY2001FY2002
    Corporate sector
    Debt/shareholders’ equity (book value)206.3207.9189.3182.5156.8156.0146.1
    Short-term debt/total debt40.541.839.039.437.736.839.0
    Interest burden238.239.146.536.328.432.327.8
    Debt/operating profits1,344.71,498.51,813.81,472.11,229.31,480.01,370.0
    Memorandum items:
    Total debt/GDP106.7106.5106.2107.5102.0100.098.7
    Household sector
    Net worth/assets85.585.385.185.585.485.185.1
    Equity4.74.33.15.64.94.55.0
    Real estate40.740.039.537.536.635.434.1
    Interest burden35.75.55.35.05.15.04.9
    Memorandum items:
    Debt/equity307.6345.2477.6259.4299.5333.4298.5
    Debt/real estate35.636.737.838.640.041.943.7
    Debt/net disposable income125.3126.1127.0126.7128.5130.4128.7
    Debt/net worth16.917.217.516.917.217.417.5
    Equity/net worth5.55.03.76.55.75.25.9
    Real estate/net worth47.646.946.443.942.941.640.1
    Total debt/GDP75.575.776.977.176.476.876.0
    Banking sector
    Credit quality
    Nonperforming loans4/total loans3.95.56.25.96.38.47.4
    Capital ratio
    Stockholders’ equity/assets3.32.74.24.54.54.03.4
    Profitability measures
    Return on equity (ROE)-0.7-27.6-18.0-0.6-1.2-16.3-19.3
    Sources: Ministry of Finance, Financial Statements of Corporations by Industries; Cabinet Office, Economic and Social Research Institute, Annual Report on National Accounts; Bank of Japan, Financial Statements of Japanese Banks; and Financial Services Agency, The Status of Nonperforming Loans.

    Data are fiscal year beginning April 1.

    Interest payments as a percent of operating profits.

    Interest payments as a percent of income.

    From FY1998 onwards, nonperforming loans are based on Financial Services Agency figures reported under the Financial Reconstruction Law. Up to FY1997, they are based on loans reported by banks for risk management purposes.

    Table 9.Europe: Sectoral Balance Sheets(In percent)
    1996199719981999200020012002
    Corporate sector1
    Debt/equity284.484.082.384.884.484.984.1
    Short-term debt/total debt36.538.137.337.740.039.037.6
    Interest burden317.917.216.817.119.020.019.4
    Debt/operating profits262.5263.3258.8288.2315.9326.6337.6
    Memorandum items:
    Financial assets/equity1.61.71.82.12.01.91.6
    Liquid assets/short-term debt100.494.592.989.685.689.994.5
    Household sector1
    Net worth/assets85.886.286.186.486.085.083.4
    Equity/net worth12.814.215.317.917.116.814.6
    Equity/net financial assets35.937.839.844.043.343.137.7
    Interest burden46.46.36.76.46.56.36.1
    Memorandum items:
    Nonfinancial assets/net worth64.361.260.658.559.860.761.7
    Debt/net financial assets49.745.444.041.543.045.351.2
    Debt/income87.288.690.993.894.895.098.8
    Banking sector5
    Credit quality
    Nonperforming loans/total loans5.06.15.63.12.63.1
    Loan-loss reserve/nonperforming loans74.365.966.370.975.779.3
    Loan-loss reserve/total loans3.74.03.72.22.02.5
    Loan-loss provisions/total operating income613.211.79.16.79.412.3
    Capital ratios
    Total risk-based capital10.710.610.511.011.211.4
    Tier 1 risk-based capital7.27.07.27.77.78.1
    Equity capital/total assets3.73.93.84.14.04.0
    Capital funds/liabilities6.16.36.26.76.66.6
    Profitability measures
    Return on assets, or ROA (after tax)0.30.40.50.70.40.3
    Return on equity, or ROE (after tax)7.69.812.514.08.76.0
    Net interest margin1.91.71.41.51.41.6
    Efficiency ratio769.468.368.569.070.671.3
    Sources: ©2003 Bureau van Dijk Electronic Publishing-Bankscope; ECB Monthly Bulletin; and IMF staff estimates.

    GDP-weighted average for France, Germany, and the United Kingdom, unless otherwise noted.

    Corporate equity adjusted for changes in asset valuation.

    Interest payments as a percent of gross operating profits.

    Interest payments as percent of disposable income.

    Fifty largest euro area banks. Data availability may restrict coverage to less than 50 banks for specific indicators.

    Includes the write-off of goodwill in foreign subsidiaries by banks with exposure to Argentina.

    Cost to income ratio.

    Figure 15.Emerging and Mature Market Volatilities

    Sources: For “Emerging Market Equity,” Morgan Stanley Capital International; and IMF staff estimates. For “Emerging Market Debt,” J.P. Morgan Chase & Co.; and IMF staff estimates. For “Mature Market Equity,” Bloomberg L.P.

    1Data utilize the Emerging Markets Free index in U.S. dollars to calculate 30-day rolling volatilities.

    2Data utilize the EMBI+ total return index in U.S. dollars to calculate 30-day rolling volatilities.

    3The VIX is a market estimate of future stock market volatility, and is based on the weighted average of the implied volatilities of 8 Chicago Board Options Exchange calls and puts (the nearest in- and out-of-the-money call and put options from the first and second month expirations).

    4The VDAX represents the implied volatility of the German DAX assuming a constant 45 days remaining until expiration of DAX index contracts.

    Figure 16.Emerging Market Debt Cross-Correlations

    Sources: J.P. Morgan Chase & Co.; and IMF staff estimates.

    1Thirty-day moving simple average across all pair-wise return correlations of 20 constituents included in the EMBI Global.

    2Simple average of all pair-wise correlations of all markets in a given region with all other emerging bond markets, regardless of region.

    Table 10.Emerging Market Equity Indices
    Year to Date (as of 3/2/04)2003 End of Period200020012002200312-Month High12-Month LowAll-Time High1All-Time Low1
    Q1Q2Q3Q4
    World1,074.8748.6871.1909.61,036.31,221.31,003.5792.21,036.31,078.1710.81,448.8423.1
    Emerging Markets
    Emerging Markets Free488.4272.3332.7377.6442.8333.8317.4292.1442.8477.2269.7587.1175.3
    EMF Latin America1,187.0652.9800.2899.71,100.9915.6876.2658.91,100.91,189.4605.61,352.5185.6
    Argentina1,063.8559.9700.1733.0933.61,232.7959.6470.3933.61,090.5469.02,052.2152.6
    Brazil816.7410.1503.1593.2802.0763.2597.1395.4802.0875.9352.71,306.484.1
    Chile862.3446.0560.4694.7800.6604.7568.7445.5800.6842.2425.01,119.6178.1
    Colombia138.265.984.185.5108.642.157.768.3108.6135.362.4183.841.2
    Mexico2,187.71,350.91,637.31,708.01,873.11,464.91,698.21,442.81,873.12,165.71,302.22,193.1306.7
    Peru315.2187.1207.8246.1344.1125.0144.1182.7344.1364.2181.4364.273.5
    Venezuela119.967.4125.2145.3103.8106.195.477.7103.8175.756.1278.456.1
    EMF Asia228.7127.2154.4177.5206.4143.6149.7140.4206.4223.0126.1433.0104.1
    China26.913.916.318.925.522.816.814.125.527.113.1136.912.9
    India240.6132.4151.9188.1246.2173.4141.2148.8246.2258.3124.7323.977.7
    Indonesia942.3474.9633.5728.7831.1456.4437.2519.6831.1966.3442.01,077.7280.0
    Korea279.0158.0196.7207.7246.0125.6190.4184.7246.0274.0153.8274.059.5
    Malaysia343.6240.6262.8276.8300.4245.2250.7244.0300.4316.6234.5465.788.3
    Pakistan195.9140.7158.9180.4188.299.167.4146.0188.2204.2124.1228.954.4
    Philippines309.6210.6257.0272.6303.7352.6292.2210.1303.7332.2202.2917.3132.6
    Taiwan Province of China299.5184.1210.9250.0259.1222.2255.6189.5259.1279.5177.6483.5103.9
    Thailand255.4138.1170.7199.6280.5102.5107.5130.2280.5286.5128.0669.472.0
    EMF Europe, Middle East, & Africa181.8102.6126.9141.6163.9103.5108.4163.9176.5102.2176.585.2
    Czech Republic180.7123.1126.7142.4152.9107.697.5116.2152.9176.4115.8176.462.8
    Egypt269.3114.4158.5195.6234.6154.9101.997.4234.6293.597.4293.589.9
    Hungary745.6524.3538.3617.4646.9582.9507.9535.5646.9707.1497.5941.477.1
    Israel161.897.2135.8129.5141.4196.0132.790.8141.4161.883.7236.267.6
    Jordan259.6157.6182.3213.8238.3116.1149.5153.5238.3264.0149.1264.0103.1
    Morocco187.6142.5163.7166.3171.4198.9180.1138.5171.4183.7136.0302.199.6
    Poland1,265.9797.4914.01,049.81,118.31,307.9891.9861.01,118.31,241.3778.81,792.999.6
    Russia546.5264.6388.6436.1461.1155.2237.8270.7461.1508.4250.1538.430.6
    South Africa319.3227.6244.3258.5296.8244.8309.3272.7296.8319.7216.1350.599.7
    Turkey328,587154,022179,225225,249319,808163,012234,490169,900319,808342,720144,094342,720426
    EMF Sectors
    Energy313.8161.7205.8233.5287.4148.5162.1163.1287.4306.7155.4306.781.7
    Materials268.4163.5178.1206.1250.1140.8173.9182.8250.1262.6155.0262.698.5
    Industrials110.260.971.381.498.973.463.861.898.9105.059.3276.852.6
    Consumer discretionary248.3130.8166.8188.0233.8126.0130.6138.8233.8243.2126.9243.274.1
    Consumer staple128.382.8101.1105.7118.6103.194.688.2118.6126.180.6148.680.4
    Healthcare295.5183.8243.9252.9272.5173.9146.5169.8272.5296.5160.9296.583.3
    Financials152.689.5106.8117.9138.8112.6107.798.6138.8149.488.0185.074.6
    Information technology176.793.5117.2140.7149.6130.9134.2103.9149.6173.593.4300.073.1
    Telecommunications112.064.680.086.2100.8113.891.972.7100.8112.262.9211.562.9
    Utilities128.972.792.8107.8127.295.791.572.4127.2131.369.9247.863.1
    Data are provided by Morgan Stanley Capital International. Regional and sectoral compositions conform to Morgan Stanley Capital International Definitions.

    From 1990 or initiation of the index.

    Year to Date (as of 3/2/04)Period on Period Percent Change12-Month High12-Month LowAll-Time High1All-Time Low1
    2003 End of Period2000200120022003
    Q1Q2Q3Q4
    World3.7-5.516.44.413.9-14.1-17.8-21.130.8
    Emerging Markets
    Emerging Markets Free10.3-6.822.213.517.3-31.8-4.9-8.051.6
    EMF Latin America7.8-0.922.612.422.4-18.4-4.3-24.867.1
    Argentina13.919.125.04.727.4-26.1-22.2-51.098.5
    Brazil1.83.722.717.935.2-14.2-21.8-33.8102.9
    Chile7.70.125.724.015.2-17.0-6.0-21.779.7
    Colombia27.3-3.527.61.727.0-41.237.118.359.0
    Mexico16.8-6.421.24.39.7-21.515.9-15.029.8
    Peru-8.42.411.118.439.8-26.715.326.888.4
    Venezuela15.5-13.385.816.1-28.50.8-10.0-18.633.6
    EMF Asia10.8-9.321.414.916.3-42.54.2-6.247.1
    China5.6-1.517.116.134.7-32.0-26.0-16.080.3
    India-2.3-11.014.723.830.9-17.2-18.65.365.5
    Indonesia13.4-8.633.415.014.1-49.3-4.218.960.0
    Korea13.4-14.424.55.618.4-44.651.6-3.033.2
    Malaysia14.4-1.49.25.38.6-17.32.3-2.723.1
    Pakistan4.1-3.612.913.64.3-4.3-32.0116.728.9
    Philippines1.90.222.06.111.4-32.1-17.1-28.144.5
    Taiwan Province of China15.6-2.914.618.63.6-42.315.0-25.836.7
    Thailand-9.06.023.617.040.5-50.04.921.1115.4
    EMF Europe, Middle East, & Africa10.9-5.323.711.615.84.751.2
    Czech Republic18.26.02.912.47.45.5-9.419.231.6
    Egypt14.817.538.623.419.9-38.4-34.2-4.4140.8
    Hungary15.3-2.12.714.74.8-19.6-12.95.420.8
    Israel14.47.039.7-4.79.224.7-32.3-31.655.7
    Jordan8.92.715.617.311.4-24.728.82.655.3
    Morocco9.42.914.91.53.1-20.2-9.5-23.123.8
    Poland13.2-7.414.614.96.5-4.8-31.8-3.529.9
    Russia18.5-2.346.912.25.7-30.453.213.970.3
    South Africa7.6-16.67.45.814.8-1.226.3-11.88.8
    Turkey2.7-9.316.425.742.0-33.543.8-27.588.2
    EMF Sectors
    Energy9.2-0.927.213.523.1-24.79.20.676.2
    Materials7.3-10.68.915.821.3-21.023.55.236.8
    Industrials11.4-1.517.214.121.5-41.7-13.1-3.260.1
    Consumer discretionary6.2-5.827.512.724.3-41.63.66.368.4
    Consumer staple8.2-6.122.14.512.2-20.2-8.2-6.734.4
    Healthcare8.48.332.73.77.80.7-15.815.960.5
    Financials9.9-9.319.410.417.7-24.3-4.3-8.440.7
    Information technology18.1-10.025.320.16.3-44.92.6-22.643.9
    Telecommunications11.1-11.123.87.717.0-31.1-19.2-20.938.7
    Utilities1.30.527.616.217.9-25.0-4.4-20.975.7
    Data are provided by Morgan Stanley Capital International. Regional and sectoral compositions conform to Morgan Stanley Capital International Definitions.

    From 1990 or initiation of the index.

    Year to Date (as of 3/2/04)2003 End of Period200020012002200312-Month High12-Month LowAll-Time High1All-Time Low1
    Q1Q2Q3Q4
    Developed Markets
    Australia672.6580.4601.6627.1655.5640.1690.8604.4655.5639.6539.9712.9250.2
    Austria135.792.8101.6104.6118.096.994.691.8118.0105.479.7105.496.2
    Belgium66.744.052.355.060.185.878.655.360.165.038.153.951.2
    Canada1,092.4796.3868.0922.41,019.71,156.4965.8818.31,019.7886.4705.81,511.4338.3
    Denmark2,018.21,370.11,554.71,695.11,772.72,333.32,060.11,448.81,772.71,752.81,245.82,776.6556.5
    Finland121.684.094.492.297.4267.5171.8100.397.4126.078.8383.178.8
    France99.369.281.282.493.2152.0123.181.393.295.363.4178.663.4
    Germany77.346.960.461.574.6124.0100.156.074.678.442.9163.641.4
    Greece68.538.250.754.963.6106.176.846.863.661.938.2197.238.2
    Hong Kong SAR7,120.14,501.24,838.96,011.56,341.37,690.16,058.04,808.46,341.35,553.64,305.410,165.31,995.5
    Ireland71.156.860.762.065.992.193.156.865.967.151.9107.351.9
    Italy82.762.672.271.378.1119.991.269.678.178.458.7132.158.7
    Japan680.7480.4542.9613.4637.3808.2650.3524.3637.3628.7462.11,655.3462.1
    Netherlands71.653.460.361.968.4124.5100.466.068.480.947.4134.947.4
    New Zealand108.088.8101.4102.8107.683.994.290.0107.6101.486.6141.056.7
    Norway1,491.7804.4994.11,041.21,240.91,458.01,278.4898.31,240.91,116.3762.21,599.1455.9
    Portugal76.151.355.959.666.197.979.557.066.164.648.1123.148.1
    Singapore1,069.3725.6831.9932.01,005.11,173.4936.8764.91,005.1922.1687.31,624.2508.2
    Spain96.267.879.377.289.6107.799.069.989.681.961.1133.727.4
    Sweden5,396.43,271.73,827.34,136.54,675.27,735.06,178.83,517.44,675.24,173.82,914.912,250.4787.2
    Switzerland768.1534.3626.6656.3714.31,017.0813.4603.2714.3716.9481.41,032.8158.1
    United Kingdom1,366.01,082.41,215.41,236.11,348.71,841.41,586.21,179.21,348.71,336.7986.41,974.2585.4
    United States1,077.9796.1916.1935.61,045.41,249.91,084.5824.61,045.4950.4726.51,493.0273.7
    Period on Period Percent Change
    Developed Markets
    Australia2.6-4.03.74.24.53.77.9-12.58.5
    Austria15.01.19.52.912.8-7.6-2.4-3.028.5
    Belgium11.0-20.418.95.39.2-13.1-8.3-29.78.7
    Canada7.1-2.79.06.310.68.1-16.5-15.324.6
    Denmark13.9-5.413.59.04.69.9-11.7-29.722.4
    Finland24.9-16.212.4-2.25.6-8.9-35.8-41.6-2.9
    France6.6-14.917.31.513.11.4-19.0-34.014.6
    Germany3.7-16.228.72.021.2-10.8-19.3-44.033.2
    Greece7.8-18.432.88.315.7-38.6-27.6-39.135.8
    Hong Kong SAR12.3-6.47.524.25.5-16.7-21.2-20.631.9
    Ireland7.8-0.17.02.16.3-8.51.1-39.016.0
    Italy5.9-10.015.3-1.29.43.9-24.0-23.612.2
    Japan6.8-8.413.013.03.9-20.3-19.5-19.421.6
    Netherlands4.6-19.112.92.610.61.0-19.4-34.33.6
    New Zealand0.4-1.414.21.44.7-24.912.2-4.419.6
    Norway20.2-10.523.64.719.27.1-12.3-29.738.1
    Portugal15.3-10.19.16.610.8-6.2-18.8-28.315.9
    Singapore6.4-5.114.612.07.8-25.7-20.2-18.431.4
    Spain7.4-2.916.8-2.516.1-11.2-8.0-29.528.3
    Sweden15.4-7.017.08.113.0-13.8-20.1-43.132.9
    Switzerland7.5-11.417.34.78.86.2-20.0-25.818.4
    United Kingdom1.3-8.212.31.79.1-6.7-13.9-25.714.4
    United States3.1-3.515.12.111.7-13.6-13.2-24.026.8
    Data are provided by Morgan Stanley Capital International. Regional and sectoral compositions conform to Morgan Stanley Capital International Definitions.

    From 1990 or initiation of the index.

    Table 11.Foreign Exchange Rates(Units per U.S. dollar)
    Year to Date (as of 3/2/04)End of Period 2003End of Period12-Month Low12-Month HighAll-Time Low1All-Time High1
    Q1Q2Q3Q42000200120022003
    Emerging Markets
    Latin America
    Argentina2.922.972.812.922.931.001.003.362.933.362.753.860.98
    Brazil2.893.352.842.902.891.952.313.542.893.672.783.950.00
    Chile596.60733.25700.90660.95592.75573.85661.25720.25592.75757.05558.00759.75295.18
    Colombia2,662.152,958.002,817.002,900.802,780.002,236.002,277.502,867.002,780.002,980.002,724.002,980.00689.21
    Mexico10.9610.7710.4610.9911.239.629.1610.3711.2311.3810.1211.382.68
    Peru3.473.473.473.483.463.533.443.513.463.513.453.651.28
    Venezuela1,917.601,598.001,598.001,598.001,598.00699.51757.501,388.801,598.001,921.801,388.801,921.8045.00
    Asia
    China8.288.288.288.288.288.288.288.288.288.288.288.925.96
    India45.2547.4746.4945.7645.6346.6848.2547.9845.6348.0145.1949.0516.89
    Indonesia8,4988,9028,2758,3958,4209,67510,4008,9508,4209,0888,17516,6501,977
    Korea1,173.501,254.451,193.051,150.101,192.1001,265.001,313.501,185.701,192.101,257.951,145.751,962.50681.40
    Malaysia3.803.803.803.803.803.803.803.803.803.803.804.712.44
    Pakistan57.3158.0057.8557.9057.2557.6059.9058.2557.2558.2557.0064.3521.18
    Philippines56.3753.5353.4854.8855.5450.0051.6053.6055.5456.2752.0656.2723.10
    Taiwan Province of China33.2934.7534.6433.7433.9633.0834.9534.6433.9634.9533.0735.1924.48
    Thailand39.3042.8442.0040.0339.6243.3844.2143.1139.6243.2238.8455.5023.15
    Europe, Middle East, & Africa
    Czech Republic26.9029.3727.5127.3625.7137.2835.6030.0725.7130.2225.3742.1725.37
    Egypt6.195.766.086.146.173.894.584.626.176.194.596.193.29
    Hungary209.96227.19231.27218.30208.70282.34274.81224.48208.70238.20204.35317.5690.20
    Israel4.504.704.324.444.394.044.404.744.394.934.295.011.96
    Jordan0.710.710.710.710.710.710.710.710.710.720.700.720.64
    Morocco8.999.859.459.338.8010.5611.5910.188.8010.288.6412.067.75
    Poland3.974.103.903.953.734.133.963.833.734.103.644.711.72
    Russia28.5431.3930.3730.5929.2428.1630.5131.9629.2431.9628.4431.960.98
    South Africa6.917.877.476.936.687.5811.968.576.689.056.2012.452.50
    Turkey1,330,5001,714,0001,418,5001,391,5001,406,500668,5001,450,1001,655,1001,406,5001,769,0001,309,3001,769,0005,036
    Developed Markets
    Australia20.760.600.670.680.750.560.510.560.750.590.800.480.84
    Canada1.341.471.351.351.301.501.591.571.301.571.271.611.12
    Denmark6.106.806.456.375.917.928.357.085.917.175.819.005.34
    Euro21.221.091.151.171.260.940.891.051.261.031.280.831.28
    Hong Kong SAR7.797.807.807.747.767.807.807.807.767.807.717.827.70
    Japan110.10118.09119.80111.49107.22114.41131.66118.79107.22121.69105.37159.9080.63
    New Zealand20.680.560.590.600.660.440.420.520.660.540.710.390.72
    Norway7.137.277.207.046.678.808.966.946.677.686.629.585.51
    Singapore1.711.761.761.731.701.731.851.731.701.781.671.911.39
    Sweden7.588.457.997.757.199.4210.488.697.198.817.1111.035.09
    Switzerland1.301.351.351.321.241.611.661.381.241.421.221.821.12
    United Kingdom21.841.581.651.661.791.491.451.611.791.551.901.372.01
    Source: Bloomberg L.P.

    From 1990 or initiation of the index.

    U.S. dollar per unit.

    Year to Date (as of 3/2/04)Period on Period Percent Change12-Month Low12-Month HighAll-Time Low1All-Time High1
    End of Period 2003End of Period
    Q1Q2Q3Q42000200120022003
    Emerging Markets
    Latin America
    Argentina0.513.05.7-3.5-0.50.2-0.2-70.214.7
    Brazil0.25.617.9-1.90.3-7.7-15.6-34.722.4
    Chile-0.6-1.84.66.011.5-7.8-13.2-8.221.5
    Colombia4.4-3.15.0-2.94.3-16.3-1.8-20.63.1
    Mexico2.4-3.73.0-4.8-2.2-1.25.1-11.7-7.6
    Peru-0.41.20.2-0.40.6-0.52.4-2.01.5
    Venezuela-16.7-13.10.00.00.0-7.3-11-45.5-13.1
    Asia
    China0.00.00.00.00.00.00.00.00.0
    India0.81.12.11.60.3-6.7-3.30.65.2
    Indonesia-0.90.57.6-1.4-0.3-26.6-7.016.26.3
    Korea1.6-5.55.13.7-3.5-9.9-3.710.8-0.5
    Malaysia0.00.00.00.00.00.00.00.00.0
    Pakistan-0.10.40.3-0.11.1-10.1-3.82.81.7
    Philippines-1.50.10.1-2.5-1.2-19.5-3.1-3.7-3.5
    Taiwan Province of China2.0-0.30.32.7-0.7-5.1-5.30.92.0
    Thailand0.80.62.04.91.0-13.6-1.92.68.8
    Europe, Middle East, & Africa
    Czech Republic-4.42.46.80.56.4-3.94.718.416.9
    Egypt-0.4-19.8-5.1-1.1-0.4-11.5-15.1-0.9-25.1
    Hungary-0.6-1.2-1.85.94.6-10.62.722.47.6
    Israel-2.31.08.7-2.71.12.7-8.1-7.38.0
    Jordan0.10.00.10.00.0-0.30.2-0.10.1
    Morocco-2.23.34.21.36.1-4.6-8.913.915.7
    Poland-6.0-6.65.0-1.15.80.44.23.52.6
    Russia2.51.83.4-0.74.6-2.2-7.7-4.59.3
    South Africa-3.39.05.37.83.7-18.8-36.639.628.2
    Turkey5.7-3.420.81.9-1.1-18.6-53.9-12.417.7
    Developed Markets
    Australia1.67.611.41.010.6-14.9-8.810.233.9
    Canada-3.47.18.9-0.44.2-3.5-5.91.321.2
    Denmark-3.14.15.41.37.7-6.7-5.117.919.8
    Euro-3.04.05.51.38.1-6.3-5.618.020.0
    Hong Kong SAR-0.30.00.00.7-0.3-0.30.00.00.4
    Japan-2.60.6-1.47.54.0-10.4-13.110.810.8
    New Zealand3.85.85.91.310.2-14.9-6.125.925.0
    Norway-6.6-4.61.02.35.7-8.9-1.829.24.1
    Singapore-0.5-1.70.21.91.7-4.0-6.06.42.1
    Sweden-5.12.85.83.07.9-9.5-10.220.620.9
    Switzerland-4.42.40.02.46.5-1.3-3.020.011.7
    United Kingdom3.0-1.74.50.47.5-7.7-2.610.710.9
    United States0.00.00.00.00.00.00.00.00.0
    Source: Bloomberg L.P.

    From 1990 or initiation of the index.

    U.S. dollar per unit.

    Table 12.Emerging Market Bond Index: EMBI+ Total Returns Index
    Year to Date (as of 3/2/04)End of Period 2003End of Period12-Month High12-Month LowAll-Time HighAll-Time Low
    Q1Q2Q3Q42000200120022003
    Composite29724627328029520220022929530422930462
    Latin America
    Argentina7060797068184615868825619648
    Brazil37727732234238822223823038840523040567
    Colombia21718420520421111915617621122017122097
    Ecuador49530235337346417724123046451022951061
    Mexico29126127727928119021725228128824928859
    Panama46041543743945130035439545147039547056
    Peru43237838542043224430734043244933844952
    Venezuela36226031233938222123327638239224839259
    Asia
    Malaysia128119126127126116126129115129100
    Philippines1631451621641649812514316416814216878
    Europe, Middle East, & Africa
    Bulgaria55051152652754535644749454555149355176
    Egypt14112313313513811713814211714299
    Morocco26424425425726320022323926326523926573
    Nigeria41732536938939620925628139641328141361
    Poland33031333532532324627230832334430634460
    Russia34630333533233713020327633734927634924
    South Africa127119122123123113123126113126100
    Turkey20413716017920110512715420120712820793
    Ukraine176165170173178126152178180152180106
    Latin25320422923625320217418725326218526262
    Non-Latin42236239740241420327434441442534442563
    Period on Period Percent Change
    EMBI+0.87.611.02.45.315.7-0.814.228.8
    Latin America
    Argentina3.34.830.4-11.3-2.77.7-66.8-5.618.0
    Brazil-2.920.516.46.213.512.97.2-3.369.0
    Colombia3.24.411.8-0.83.42.230.812.819.7
    Ecuador6.831.216.95.924.153.936.1-4.7101.5
    Mexico3.53.76.10.60.717.914.216.411.4
    Panama1.94.95.40.42.88.317.911.714.2
    Peru0.111.02.09.12.70.226.210.726.9
    Venezuela-5.3-6.120.38.412.815.05.518.738.2
    Asia
    Malaysia1.32.36.10.3-0.18.7
    Philippines-0.80.911.61.30.1-4.427.614.414.2
    Europe, Middle East, & Africa
    Bulgaria1.13.43.00.03.45.125.710.510.2
    Egypt2.15.58.01.81.918.2
    Morocco0.32.24.01.42.25.511.17.210.2
    Nigeria5.115.513.75.31.915.622.49.940.9
    Poland2.31.66.8-2.9-0.715.910.613.34.6
    Russia2.610.110.4-1.01.754.955.835.922.4
    South Africa2.74.83.10.90.09.0
    Turkey1.5-10.616.611.812-1.721.720.730.4
    Ukraine-0.88.12.92.22.621.016.6
    Latin0.29.412.03.27.012.6-13.77.235.4
    Non-Latin1.85.19.71.42.927.035.425.620.3
    Source: J.P. Morgan Chase & Co.
    Table 13.Emerging Market Bond Index: EMBI+ Yield Spreads
    Year to Date (as of 3/2/04)End of Period 2003End of Period12-Month High12-Month LowAll-Time HighAll-Time Low
    Q1Q2Q3Q42000200120022003
    EMBI+4416715475064187567317654187653841,697384
    Latin America
    Argentina5,7956,1654,5545,4845,6327734,3726,3915,6327,0844,3647,220383
    Brazil5631,0488016984637498631,4464631,4464102,436410
    Colombia4156024514784317555146454317223571,094357
    Ecuador7461,3721,1781,1217991,4151,2331,8017991,8016834,764630
    Mexico1832912372121993923083311993371801,160180
    Panama354399372368335501409444335448299769280
    Peru3514784913553126875216103126182571,061257
    Venezuela7611,4121,0028285939581,1301,1275931,4785402,703405
    Asia
    Malaysia84151987771171711716720367
    Philippines4835434434144156444665304155703781,0260
    Europe, Middle East, & Africa
    Bulgaria1812532292351777724332911772911601,679160
    Egypt139307223178138358138358114561114
    Morocco1693722442241605845183901603991281,519128
    Nigeria7031,4191,1078067322,0371,4262,2767322,2766373,932633
    Poland76187687369241195185691871741417
    Russia2563652842852571,1726694782574782116,890211
    South Africa128175180149141238141238115320115
    Turkey3289767515413098007076933091,1032861,194286
    Ukraine3234043703032589406712586741391,618139
    Excluding Argentina364577469418334752620670334670303921303
    Period on Period Basis Point Change
    EMBI+23-94-124-41-88-68-2534-347
    Latin America
    Argentina163-226-1,6119301482403,5992,019-759
    Brazil100-398-247-103-235113114583-983
    Colombia-16-43-15127-47332-241131-214
    Ecuador-53-429-194-57-322-1,938-182568-1,002
    Mexico-16-40-54-25-1329-8423-132
    Panama19-45-27-4-3391-9235-109
    Peru39-13213-136-43244-16689-298
    Venezuela168285-410-174-235114172-3-534
    Asia
    Malaysia13-20-53-21-6-100
    Philippines6813-100-291320-17864-115
    Europe, Middle East, & Africa
    Bulgaria4-38-246-58146-339-142-114
    Egypt1-51-84-45-40-220
    Morocco9-18-128-20-64204-66-128-230
    Nigeria-29-857-312-301-74699-611850-1,544
    Poland72-1195-429-46-10-116
    Russia-1-113-811-28-1,260-503-191-221
    South Africa-13-635-31-8-97
    Turkey19283-225-210-232380-93-14-384
    Ukraine65-267-34-67-45-269-413
    Excluding Argentina30-93-108-51-84-13250-336
    Source: J.P. Morgan Chase & Co.
    Table 14.Total Emerging Market Financing(In millions of U.S. dollars)
    Year to Date
    (as of 3/2/04)
    199920002001200220032003
    Q1Q2Q3Q4
    Total41,259.2163,569.6216,402.7162,137.7135,543.9191,522.735,012.845,823.152,921.062,134.9
    Africa920.84,707.29,382.86,992.37,169.513,522.02,411.34,605.35,387.81,117.7
    Algeria50.0150.075.075.0
    Angola455.0350.01,542.0317.01,225.0
    Botswana22.5
    Cameroon53.8100.0100.0
    Chad400.0
    Côte d’Ivoire179.015.0
    Ghana30.0320.0300.0420.0650.0650.0
    Kenya7.580.2134.0134.0
    Mali150.4287.6287.6
    Mauritius160.0
    Morocco322.256.4136.1474.7474.7
    Mozambique200.035.535.5
    Namibia35.035.0
    Niger27.027.0
    Nigeria90.0100.01,000.0762.0460.0169.0133.0
    Senegal40.0
    Seychelles50.0150.0
    South Africa920.83,423.48,698.84,646.74,159.18,884.01,349.93,674.43,336.6523.2
    Tanzania135.0
    Tunisia352.694.3533.0750.0485.2357.012.212108.9
    Zaire20.8
    Zambia30.030.0
    Zimbabwe150.0
    Asia17,523.355,958.685,881.067,483.453,900.381,796.912,937.015,639.922,914.130,641.9
    Brunei129.0
    China4,782.33,461.823,063.45,567.35,051.010,954.91,269.51,203.71,761.67,343.3
    Hong Kong SAR429.111,488.321,046.418,307.37,014.77,766.3538.5402.51,849.04,276.3
    India1,534.52,376.22,224.22,382.21,559.64,017.9382.5650.01,162.21,823.1
    Indonesia215.01,465.31,283.1964.9756.05,109.92,927.5686.7823.7672.1
    Korea3,362.313,542.314,230.417,021.014,546.317,237.02,384.96,385.34,774.33,692.6
    Lao P.D.R.30.0
    Macao29.5
    Malaysia370.05,177.24,506.44,432.45,108.95,621.91,825.9742.7635.92,524.7
    Marshall Islands34.7
    Papua New Guinea232.4153.7153.7
    Pakistan500.0182.585.09.39.3
    Philippines1,370.07,181.75,021.93,658.85,797.35,263.51,699.6247.71,280.02,036.2
    Singapore1,131.34,338.76,079.710,383.63,083.25,133.2445.72,599.9754.01,358.4
    Sri Lanka23.0100.0105.0186.0100.086.0
    Taiwan Province of China3,630.24,019.96,703.53,794.09,308.917,557.11,409.42,204.28,423.75,800.6
    Thailand198.62,551.71,572.5684.41,003.12,735.253.6462.91,343.7875.0
    Vietnam100.020.0392.551.045.06.0
    Europe10,556.526,191.537,021.722,787.730,330.645,471.810,770.011,056.613,238.014,036.6
    Azerbaijan77.216.0
    Belarus36.036.0
    Bulgaria53.98.9242.31,260.8381.36.2375.1
    Croatia372.71,504.91,498.71,766.01,399.12,026.0768.1583.8178.1496.0
    Cyprus288.586.3633.0547.9648.2226.0422.2
    Czech Republic540.3127.1564.6463.41,518.8187.71,284.52,240.41,331.1
    Estonia289.2412.7202.1439.7507.7411.135.061.5
    Georgia6.06.0
    Gibraltar65.080.0
    Hungary1,589.13,471.21,308.81,364.71,056.13,774.81,081.3886.61,438.2368.6
    Kazakstan417.0429.6573.5773.51,535.030.050.0730.0725.0
    Kyrgyz Republic95.0
    Latvia288.923.0212.174.670.770.7
    Lithuania754.2959.7683.8247.3374.3431.7431.7
    Macedonia10.047.647.6
    Malta57.085.0114.7114.7
    Moldova40.0
    Poland2,616.83,780.75,252.94,836.66,001.88,550.52,170.51,606.11,556.53,217.4
    Romania176.0594.41,347.21,742.21,803.2227.01,076.477.2448.0
    Russia1,398.0166.83,950.73,200.18,684.811,856.23,590.91,380.33,045.33,914.5
    Slovak Republic994.71,466.7219.9143.1940.679.3574.4286.9
    Slovenia76.0687.7672.7827.2309.3394.8321.561.511.8
    Turkey3,139.711,900.020,385.46,405.16,385.59,408.41,728.62,412.13,047.22,225.0
    Ukraine600.0290.715.0514.01,370.060.0800.0410.0100.0
    Uzbekistan142.040.030.046.038.73.735.0
    Yugoslavia, FYR of19.410.910.9
    Middle East2,695.015,387.414,999.711,020.310,830.48,368.11,139.02,403.92,324.52,500.7
    Bahrain361.11,391.0207.0665.01,800.0500.01,300.0
    Egypt200.01,533.7919.42,545.0670.0155.0155.0
    Iran, I.R. of692.0757.7887.02,671.4700.0750.0700.0
    Israel500.03,719.02,908.51,602.6344.4750.0
    Jordan60.080.9
    Lebanon1,421.41,752.43,300.0990.0160.0160.0
    Kuwait147.5250.0770.0750.0365.0365.0
    Libya50.0
    Oman75.0356.8685.02,417.0907.8907.8
    Qatar665.02,000.01,980.0913.01,571.7880.871.053.9658.097.9
    Saudi Arabia230.04,374.82,200.9275.0300.0569.5400.0169.5
    United Arab Emirates1,025.0781.02,045.0520.7370.02,080.0168.0300.01,337.0275.0
    Latin America9,563.661,324.969,117.653,854.033,313.042,363.97,755.512,117.59,056.613,838.0
    Argentina17,844.416,648.53,423.9824.2160.060.0100.0
    Bolivia20.090.0
    Brazil2,905.012,951.923,238.219,532.911,032.311,596.2298.04,298.43,744.83,660.0
    Chile600.08,031.75,782.53,935.33,011.54,699.01,150.0730.01,350.01,469.0
    Colombia500.03,555.83,093.24,895.02,221.01,911.3500.0250.0515.0646.3
    Costa Rica310.0300.0250.0400.0250.0490.0450.040.0
    Dominican Republic74.0531.1333.0670.4600.024.446.0
    Ecuador73.0910.010.0
    El Salvador316.5160.0488.51,251.5381.0348.532.5
    Guadeloupe17.4
    Guatemala222.0505.0325.044.0300.0300.0
    Jamaica247.9421.0726.5345.049.648.31.3
    Mexico3,900.714,099.515,313.413,823.510,172.016,995.53,611.06,706.5800.55,874.2
    Paraguay55.070.0
    Peru1,618.4465.4137.51,993.01,375.0750.0125.0500.0
    St. Lucia20.020.0
    Trinidad & Tobago100.0230.0301.070.0303.046.046.0
    Uruguay465.0602.11,147.4400.0
    Venezuela1,000.01,561.72,263.33,417.51,015.03,670.02.02,200.01,470.0
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Capital Data.
    Table 15.Emerging Market Bond Issuance(In millions of U.S. dollars)
    Year to Date (as of 3/2/04)199920002001200220032003
    Q1Q2Q3Q4
    Total29,263.282,359.480,475.489,036.961,647.493,519.220,108.127,981.226,307.123,217.5
    Africa377.62,345.51,485.82,109.62,161.16,558.6483.03,063.93,011.6
    Mauritius160.0
    Morocco151.5464.9464.9
    South Africa377.61,804.71,485.81,647.71,511.15,736.7126.12,599.03,011.6
    Tunisia229.3462.0650.0357.0357.0
    Asia8,491.723,424.724,501.435,869.222,532.732,709.34,225.88,560.29,834.910,253.5
    China1,060.01,770.72,341.9602.82,034.250.0318.81,665.4
    Hong Kong SAR29.97,124.87,058.910,458.61,951.61,450.6184.5617.46487
    India820.0100.0100.099.3153.0450.0100.0350.0
    Indonesia125.0375.0609.0416.6192.4
    Korea3,217.94,905.87,653.07,756.36,705.511,531.31,790.14,346.33,305.82,089.0
    Malaysia225.02,062.41,419.72,150.01,880.0962.5962.5
    Pakistan500.0
    Philippines1,300.04,751.22,467.31,842.44,773.83,729.61,024.6200.01,055.01,450.0
    Singapore117.92,147.12,333.88,664.7562.12,702.41.71,404.2617.7678.8
    Taiwan Province of China2,281.0475.01,698.02,152.45,480.88,939.71,409.41,658.53,627.82,409.1
    Thailand798.4278.648.0300.0300.0
    Europe8,765.413,872.814,202.511,558.614,997.021,580.88,150.87,670.35,895.43,389.1
    Bulgaria53.9223.41,247.8
    Croatia372.7601.2858.0934.0847.5983.6768.1215.4
    Cyprus288.5480.5479.8648.2226.0422.2
    Czech Republic421.7507428.4337.718771,284.52,240.4150.0
    Estonia84.9335.765.5292.6323.3323.3
    Hungary1,239.52,410.5540.81,247.870.52,211.41,081.31,130.1
    Kazakstan300.0350.0250.0209.0100.0100.0
    Latvia236.7180.8
    Lithuania754.2531.5376.2222.4355.643174317
    Poland2,210.81,652.61,553.52,773.72,679.94,301.21,622.01,130.2549.01,000.0
    Romania259.5908.61,062.2813.6813.6
    Russia820.075.01,352.73,391.54,005.02,050.0475.0150.01,330.0
    Slovak Republic800.2978.3219.9143.1861.3574.4286.9
    Slovenia439.1384.7490.030.2
    Turkey2,768.25,761.28,490.82,158.73,259.85,253.81,626.62,377.21,250.0
    Ukraine600.0290.7499.01,310.060.0800.0350.0100.0
    Middle East2,065.04,409.84,670.65,920.73,706.61,860.0500.01,000.0160.0200.0
    Bahrain209.1188.5325.0750.0500.0250.0
    Egypt100.01,500.0
    Iran, I.R. of986.3750.0
    Israel500.01,679.21,329.71,120.7344.4750.0
    Jordan80.9
    Kuwait750.0200.0200.0
    Lebanon1,421.41,752.43,300.0990.0160.0160.0
    Qatar665.01,000.01,400.0
    United Arab Emirates900.0230.0
    Latin America9,563.638,306.735,615.233,578.818,250.030,810.56,748.57,686.77,405.39,375.0
    Argentina14,182.813,024.81,500.5100.0100.0
    Brazil2,905.08,585.811,382.112,238.86,375.510,304.9100.03,904.63,190.33,515.0
    Chile600.01,763.8679.71,536.01,728.92,900.01,000.0150.0900.0850.0
    Colombia500.01,675.61,547.24,263.31,000.01,765.0500.0250.0515.0500.0
    Costa Rica310.0300.0250.0250.0250.0490.0450.040.0
    Dominican Republic500.0600.0600.0
    El Salvador150.050.0353.51,251.5348.5348.5
    Grenada100.0
    Guatemala325.0300.0300.0
    Jamaica247.9421.06907300.0
    Mexico3,900.79,854.07,078.49,231.74,914.19,082.13,000.03,382.1300.02,400.0
    Peru1,930.01,250.0750.0500.0
    Trinidad & Tobago100.0230.0250.0
    Uruguay350.0442.61,106.1400.0
    Venezuela1,000.01,214.7489.41,583.23,670.02,200.01,470.0
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Capital Data.
    Table 16.Emerging Market Equity Issuance(In millions of U.S. dollars)
    Year to Date (as of 3/2/04)199920002001200220032003
    Q1Q2Q3Q4
    Total6,231.823,187.441,772.811,245.916,359.428,047.21,210.31,994.27,092.717,871.3
    Africa223.3658.7103.3150.9340.5977.4678.875.30.0223.2
    Morocco56.46.8
    South Africa223.3658.746.9144.1340.5977.4678.875.3223.2
    Asia5,552.418,271.831,567.79,591.512,411.424,431.1517.11,711.66,906.015,417.7
    China3,697.31,477.420,239.72,810.42,546.06,850.3509.5337.1339.85,677.9
    Hong Kong SAR364.23,370.03,088.6297.12,857.72,962.286.0493.62,382.6
    India263.5874.4916.7467.2264.81,243.5330.4913.1
    Indonesia522.228.2347.2281.01,008.4270.1131.3607.1
    Korea94.46,590.6784.83,676.41,553.71,222.6268.9465.1488.5
    Macao29.5
    Malaysia15.4891.2510.87.7155.9454.6
    Papua New Guinea232.4153.7153.7
    Philippines221.7194.611.3
    Singapore493.41,725.62,202.2625.8891.61,168.7481.7123.3563.7
    Taiwan Province of China486.22,500.43,951.51,126.63,057.98,272.1267.74,702.83,301.5
    Thailand153.4757.3132.0225.356.31,038.7163.7875.0
    Europe456.11,411.63,339.8259.41,612.41,811.314.473.533.01,690.4
    Croatia22.3
    Czech Republic824.6824.6
    Estonia190.3
    Hungary349.7529.219.113.213.2
    Latvia22.7
    Lithuania150.5
    Poland636.3358.9217.3604.919.733.0552.1
    Russia55.8387.7237.11,301.0368.714.453.8300.5
    Turkey106.52,423.871.4
    Middle East0.02,084.01,618.186.80.00.00.00.00.00.0
    Egypt89.2319.4
    Israel1,994.81,298.786.8
    Latin America0.0761.35,143.91,157.21,995.0827.40.0133.8153.6540.0
    Argentina349.6393.134.4
    Brazil161.43,102.51,122.91,148.5287.4133.8153.6
    Dominican Republic74.0
    Mexico162.01,574.3846.6540.0540.0
    Peru88.4
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Capital Data.
    Table 17.Emerging Market Loan Syndication(In millions of U.S. dollars)
    Year to Date (as of 3/2/04)199920002001200220032003
    Q1Q2Q3Q4
    Total5,764.258,022.894,154.561,854.957,637.169,956.413,694.415,847.719,521.121,046.1
    Africa320.01,703.07,793.74,731.84,667.95,986.11,249.51,466.02,376.2894.4
    Algeria50.0150.075.075.0
    Angola455.0350.01,542.0317.01,225.0
    Botswana22.5
    Cameroon53.8100.0100.0
    Chad400.0
    Côte d’lvoire179.015.0
    Ghana30.0320.0300.0420.0650.0650.0
    Kenya7.580.2134.0134.0
    Mali150.4287.6287.6
    Morocco170.6129.39.89.8
    Mozambique200.035.535.5
    Namibia35.035.0
    Niger27.027.0
    Nigeria90.0100.01,000.0762.0460.0169.0133.0
    Senegal40.0
    Seychelles50.0150.0
    South Africa320.0960.07,166.12,855.02,307.52,170.0545.01,000.0325.0300.0
    Tanzania135.0
    Tunisia123.494.371.0100.0128.212.27.2108.9
    Zaire20.8
    Zambia30.030.0
    Zimbabwe150.0
    Asia3,479.214,262.029,812.022,022.718,956.224,656.48,194.05,368.26,173.24,970.7
    Brunei129.0
    China1,085.0924.41,053.1415.01,902.22,070.4760.0816.61,103.0
    Hong Kong SAR35.0993.510,898.97,551.62,205.53,353.5538.5132.0738.01,245.0
    India451.01,401.81,207.61,815.71,141.82,324.4382.5650.0731.8560.0
    Indonesia215.0943.11,254.9492.6100.03,492.52,927.5500.065.0
    Korea50.02,046.05,792.65,588.26,287.14,483.0594.71,770.01,003.31,115.0
    Lao P.D.R.30.0
    Malaysia145.03,114.83,086.72,267.02,337.74,148.61,818.2742.7480.01,107.6
    Marshall Islands34.7
    Pakistan182.585.09.39.3
    Philippines70.02,208.92,360.01,816.41,012.31,533.8675.047.7225.0586.2
    Singapore520.0466.01,543.71,093.21,629.51,262.2444.0714.013.0115.9
    Sri Lanka23.0100.0105.0186.0100.086.0
    Taiwan Province of China863.01,044.51,054.0515.0770.2345.3278.093.090.0
    Thailand45.2996.01,440.5180.5898.71,396.553.6162.91,180.0
    Vietnam100.020.0392.551.045.06.0
    Europe1,335.010,907.119,479.310,969.713,721.222,079.82,604.83,312.87,309.68,957.2
    Azerbaijan77.216.0
    Belarus36.036.0
    Bulgaria8.918.913.0381.36.2375.1
    Croatia903.6640.7809.8551.61,042.5368.4178.1496.0
    Cyprus86.3152.568.1
    Czech Republic118.6127.1513.935.0356.5356.5
    Estonia14.077.0136.6147.1184.387.835.061.5
    Georgia6.06.0
    Gibraltar65.080.0
    Hungary531.6748.9116.9985.61,550.2886.6308.2355.4
    Kazakstan117.079.6323.5564.51,435.030.050.0730.0625.0
    Kyrgyz Republic95.0
    Latvia52.223.031.351.970.770.7
    Lithuania428.2157.224.918.8
    Macedonia10.047.647.6
    Malta57.085.0114.7114.7
    Moldova40.0
    Poland406.01,491.93,340.52,062.93,104.63,644.4548.5456.1974.51,665.3
    Romania176.0334.9438.6680.0989.6227.0262.877.2448.0
    Russia578.0111.03,488.11,610.33,992.37,482.51,526.5851.52,895.32,284.0
    Slovak Republic194.5488.379.379.3
    Slovenia76.0248.6288.0337.2279.0394.8321.561.511.8
    Turkey265.06,138.89,470.94,246.43,054.34,154.6102.034.91,797.22,225.0
    Ukraine15.015.060.060.0
    Uzbekistan142.040.030.046.038.73.735.0
    Yugoslavia, FYR of19.410.910.9
    Middle East630.08,893.78,711.05,012.77,123.86,508.1639.01,403.92,164.52,300.7
    Bahrain152.01,202.5207.0340.01,050.01,050.0
    Egypt200.01,344.5600.01,045.0670.0155.0155.0
    Iran, I.R. of692.0757.7887.01,685.1700.0700.0
    Israel45.0280.0395.0
    Jordan60.0
    Kuwait147.5250.0770.0165.0165.0
    Libya50.0
    Oman75.0356.8685.02,417.0907.8907.8
    Qatar1,000.0580.0913.01,571.7880.871.053.9658.097.9
    Saudi Arabia230.04,374.82,200.9275.0300.0569.5400.0169.5
    United Arab Emirates125.0781.02,045.0520.7140.02,080.0168.0300.01,337.0275.0
    Latin America22,257.028,358.519,118.013,167.910,726.01,007.04,296.91,497.73,923.1
    Argentina3,312.13,230.61,889.0824.260.060.0
    Bolivia20.090.0
    Brazil4,204.78,753.66,171.33,508.41,003.9198.0260.0400.9145.0
    Chile6,267.95,102.82,399.31,282.61,799.0150.0580.0450.0619.0
    Colombia1,880.21,546.0631.71,221.0146.3146.3
    Costa Rica150.0
    Dominican Republic31.1333.070.424.446.0
    Ecuador73.0910.010.0
    El Salvador166.5110.0135.032.532.5
    Guadeloupe17.4
    Guatemala222.0505.044.0
    Jamaica35.845.049.648.31.3
    Mexico4,083.66,660.74,591.84,411.47,373.4611.03,324.3500.52,934.3
    Paraguay55.070.0
    Peru1,530.0465.4137.563.0125.0125.0
    St. Lucia20.020.0
    Trinidad & Tobago51.070.0303.046.046.0
    Uruguay115.0159.541.3
    Venezuela347.01,773.91,834.31,015.02.0
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Capital Data.
    Table 18.Equity Valuation Measures: Dividend-Yield Ratios
    Year to Date (as of 3/2/04)200319992000200120022003
    Q1Q2Q3Q4
    Argentina0.991.491.571.231.083.294.625.163.421.08
    Brazil3.555.255.034.363.462.953.184.935.513.46
    Chile1.682.641.981.741.761.882.332.312.761.76
    China1.913.522.922.962.193.140.951.952.412.19
    Colombia3.225.784.954.483.926.7811.125.634.783.92
    Czech5.822.237.637.366.851.360.952.282.366.85
    Egypt4.106.895.194.234.693.925.756.487.534.69
    Hong Kong SAR2.654.153.933.202.822.312.583.253.852.82
    Hungary0.851.431.130.990.941.141.461.301.400.94
    India1.572.122.121.881.471.251.592.031.811.47
    Indonesia3.514.464.134.003.830.913.053.654.173.83
    Israel1.001.180.560.801.101.872.262.241.471.10
    Jordan2.233.463.112.652.364.244.543.513.772.36
    Korea1.882.752.252.141.820.812.051.541.381.82
    Malaysia2.152.522.442.492.381.151.701.872.042.38
    Mexico1.632.542.222.021.831.271.631.982.301.83
    Morocco3.864.714.384.324.182.493.593.974.844.18
    Pakistan8.3311.3011.078.788.634.005.1216.0110.958.63
    Peru2.012.432.342.311.752.863.383.162.371.75
    Philippines1.461.861.401.331.431.081.441.431.971.43
    Poland1.161.921.561.391.280.700.681.871.841.28
    Russia2.112.191.761.612.380.140.921.111.872.38
    Singapore1.912.432.502.342.030.861.401.802.272.03
    South Africa2.874.724.303.673.222.092.753.473.833.22
    Sri Lanka2.283.742.121.842.513.225.594.793.352.51
    Taiwan Province of China1.681.641.661.911.860.971.711.421.601.86
    Thailand1.893.132.542.571.690.702.132.022.481.69
    Turkey0.891.671.581.260.890.761.911.151.350.89
    Venezuela3.025.865.004.483.685.805.053.892.383.68
    Emerging Markets Free2.112.972.672.522.251.522.092.302.432.25
    EMF Asia1.902.582.292.281.961.011.711.731.811.96
    EMF Latin America2.513.673.393.032.612.282.693.373.642.61
    EMF Europe & Middle East1.621.771.551.531.811.161.841.691.711.81
    ACWI Free1.982.472.162.161.991.271.461.722.251.99
    Note: Data are from Morgan Stanley Capital International. The countries above include the 27 constituents of the Emerging Markets Free index as well as Hong Kong SAR and Singapore. Regional breakdowns conform to Morgan Stanley Capital International conventions. All indices reflect investible opportunities for global investors by taking into account restrictions on foreign ownership. The indices attempt to achieve an 85 percent representation of freely floating stocks.
    Table 19.Equity Valuation Measures: Price-to-Book Ratios
    Year to Date (as of 3/2/04)2003199819992000200120022003
    Q1Q2Q3Q4
    Argentina1.961.221.361.381.791.311.471.040.861.201.79
    Brazil1.811.181.191.371.810.521.241.181.111.241.81
    Chile1.641.111.291.501.551.161.691.491.391.151.55
    China2.331.241.411.632.160.630.692.751.881.302.16
    Colombia1.661.161.111.111.340.710.710.490.531.181.34
    Czech1.250.860.830.951.060.730.801.000.810.841.06
    Egypt2.521.171.611.812.172.133.572.321.391.052.17
    Hong Kong SAR1.671.021.101.381.471.312.271.671.381.101.47
    Hungary2.181.761.831.941.973.053.352.332.031.911.97
    India3.612.072.472.883.792.003.552.712.132.153.79
    Indonesia2.511.381.932.112.261.392.411.032.722.232.26
    Israel3.001.832.532.332.461.482.533.042.221.742.46
    Jordan2.101.251.561.821.981.051.031.021.381.261.98
    Korea1.691.041.321.351.520.991.420.821.331.211.52
    Malaysia2.071.621.711.741.851.251.981.591.761.541.85
    Mexico2.361.701.922.042.201.722.311.911.991.772.20
    Morocco1.621.391.441.451.504.273.532.561.791.401.50
    Pakistan2.351.901.982.232.311.071.481.410.882.042.31
    Peru2.481.711.712.072.771.411.921.131.291.842.77
    Philippines1.420.871.181.331.401.481.641.271.110.851.40
    Poland1.901.291.491.681.721.472.122.101.331.371.72
    Russia1.461.001.251.341.330.672.410.901.271.221.33
    Singapore1.711.231.391.521.621.552.562.051.631.261.62
    South Africa1.971.471.661.701.951.522.752.681.811.721.95
    Sri Lanka1.601.041.832.021.521.151.000.600.831.221.52
    Taiwan Province of China2.341.491.772.112.102.213.461.871.981.532.10
    Thailand2.711.782.172.302.941.142.041.511.681.832.94
    Turkey1.951.431.311.492.022.559.212.723.801.762.02
    Venezuela1.800.591.001.141.410.570.630.670.480.871.41
    Emerging Markets Free2.031.331.541.671.901.212.121.641.591.451.90
    EMF Asia2.111.301.561.711.951.402.091.531.681.411.95
    EMF Latin America1.981.351.441.591.900.871.571.361.351.441.90
    EMF Europe & Middle East1.881.281.511.591.671.883.412.151.701.421.67
    ACWI Free2.511.972.262.272.463.494.233.462.672.072.46
    Note: Data are from Morgan Stanley Capital International. The countries above include the 27 constituents of the Emerging Markets Free index as well as Hong Kong SAR and Singapore. Regional breakdowns conform to Morgan Stanley Capital International conventions. All indices reflect investible opportunities for global investors by taking into account restrictions on foreign ownership. The indices attempt to achieve an 85 percent representation of freely floating stocks.
    Table 20.Equity Valuation Measures: Price-Earnings Ratios
    Year to Date (as of 3/2/04)200319992000200120022003
    Q1Q2Q3Q4
    Argentina14.99-3.0915.267.9613.7224.8220.6919.13-12.8613.72
    Brazil10.0711.4510.009.3710.3418.6412.838.4911.2310.34
    Chile32.5931.7932.8334.4230.8146.4031.9618.0217.1630.81
    China18.8411.9511.7613.0517.1114.9740.6014.0912.1417.11
    Colombia11.068.858.798.578.9420.30-103.4464.919.558.94
    Czech14.7011.2310.1811.5112.49-42.0416.499.2110.4012.49
    Egypt12.2610.0314.949.0710.9016.549.356.287.3310.90
    Hong Kong SAR22.7013.4613.4717.0820.0030.817.6420.4714.9120.00
    Hungary14.7910.1110.1511.0913.1118.5014.8219.3410.0613.11
    India18.0712.4613.2515.9718.9622.8415.6113.8413.5618.96
    Indonesia11.415.647.498.3110.37-48.7318.688.377.1410.37
    Israel34.2665.7968.8352.9634.0525.5123.88228.84-46.6234.05
    Jordan22.6912.7813.9420.1821.3813.51-107.1115.1012.3921.38
    Korea15.668.148.8811.4613.9323.248.1215.2311.4413.93
    Malaysia18.6814.4914.7815.3716.33-8.4120.6322.6213.2116.33
    Mexico16.5213.7317.0414.9615.7014.6413.7814.2314.0715.70
    Morocco24.339.5321.6121.9422.4618.659.3010.779.8722.46
    Pakistan9.237.417.818.448.6817.608.394.538.078.68
    Peru23.7013.8412.4214.2626.4518.4615.4414.0820.4226.45
    Philippines19.9517.4919.3520.2520.18142.83-35.0643.7218.2120.18
    Poland25.41-30.3036.7928.6719.5022.3314.3018.32-261.1419.50
    Russia11.139.4214.2413.9611.13-126.435.695.037.3311.13
    Singapore20.3418.6419.4021.5421.3841.1818.9416.5321.0721.38
    South Africa13.858.719.4410.9312.7518.7314.8711.3010.5012.75
    Sri Lanka12.188.6714.7714.8312.697.594.248.5314.3512.69
    Taiwan Province of China28.8061.5437.6036.0125.7038.2614.0621.0873.1325.70
    Thailand14.0612.5614.4712.4915.24-8.94-14.6116.6715.5215.24
    Turkey9.40-25.819.327.9811.0138.6011.7725.51101.3311.01
    Venezuela31.258.8714.4016.5624.4017.6821.7618.4313.4324.40
    Emerging Markets Free16.0212.7612.7613.8415.0327.1714.8513.9913.9515.03
    EMF Asia18.2312.4212.6214.9716.7240.9815.4716.7314.8516.72
    EMF Latin America13.4015.8713.5112.2113.1818.2814.9311.6713.8413.18
    EMF Europe & Middle East14.9919.0017.8416.2814.6537.2514.0513.1016.2714.65
    ACWI Free21.5721.4222.2221.3621.9435.7025.4426.7623.1821.94
    Note: Data are from Morgan Stanley Capital International. The countries above include the 27 constituents of the Emerging Markets Free index as well as Hong Kong SAR and Singapore. Regional breakdowns conform to Morgan Stanley Capital International conventions. All indices reflect investible opportunities for global investors by taking into account restrictions on foreign ownership. The indices attempt to achieve an 85 percent representation of freely floating stocks.
    Table 21.United States Mutual Fund Flows(In millions of U.S. dollars)
    Year to Date (as of 3/2/04)200319992000200120022003
    Q1Q2Q3Q4
    Asia Pacific (Ex-Japan)9976100442963152-1,208-496-431,511
    Corporate High Yield-1,2717,1629,0513103,739-510-6,1625,9388,08220,262
    Corporate Investment Grade2,12110,6366,993-1,7227537,1364,25421,69232,68816,660
    Emerging Markets Debt318343285-17643718-500-448450889
    Emerging Markets Equity2,914-1865391,6452,67624-350-1,663-3314,673
    European Equity36513-236-2-723-1,665621-1,791-1,045-947
    Global Equity2,070-1,620-659-4377204,67312,627-3,006-5,152-1,995
    Growth-Aggressive5,389-1,8953,4194,6545,28715,24846,61017,8835,61211,465
    International & Global Debt1,7847911,031-961,499-1,582-3,272-1,602-8233,225
    International Equity11,3744501,6384,8737,6892,99913,322-4,4884,24014,651
    Japanese Equity95828509756571731-831-270-821,863
    Latin American Equity Funds-42-274362108-121-95-14733186
    Note: Data are provided by AMG Data Services and cover net flows of U.S.-based mutual funds. Fund categories are distinguished by a primary investment objective which signifies an investment of 65 percent or more of a fund’s assets. Primary sector data are mutually exclusive, but emerging and regional sectors are all subsets of international equity.
    Table 22.Bank Regulatory Capital to Risk-Weighted Assets(In percent)
    199819992000200120022003Latest
    Latin America
    Argentina20.420.819.517.9
    Bahamas20.017.518.818.522.9
    Bolivia11.812.213.414.616.116.5March
    Brazil15.615.514.315.316.517.2June
    Chile12.513.513.312.714.014.1November
    Colombia10.310.812.412.412.213.6November
    Costa Rica14.917.816.915.315.2June
    Dominican Republic
    Ecuador
    Honduras7.511.412.312.712.9
    Jamaica21.919.715.5
    Mexico14.416.213.814.715.514.4March
    Paraguay10.017.217.216.217.919.8September
    Peru11.212.012.913.412.513.4September
    Uruguay1,225.322.217.517.814.2
    Venezuela
    Emerging Europe
    Armenia29.827.825.013.630.534.3September
    Bulgaria36.741.335.631.325.223.0September
    Croatia12.720.621.418.517.617.0September
    Czech Republic12.013.614.915.415.415.5September
    Estonia17.016.113.214.415.314.5December
    Hungary16.514.913.513.913.011.6June
    Israel9.29.49.29.49.910.4March
    Kyrgyz Republic30.923.930.552.243.4June
    Latvia17.016.014.014.213.8March
    Lithuania23.817.416.315.714.813.2December
    Macedonia25.928.736.734.328.1
    Malta14.316.015.916.0
    Poland11.713.212.915.113.813.6September
    Russia11.518.119.020.319.919.2September
    Slovak Republic6.612.713.119.721.322.8June
    Slovenia16.014.013.511.911.911.4September
    Turkey17.315.325.331.8September
    Ukraine19.615.520.718.615.3September
    Western Europe
    Austria13.513.113.313.713.314.4August
    Belgium11.311.911.912.913.113.0September
    Denmark10.711.111.312.112.6
    Finland11.511.911.610.511.717.0June
    France12.711.912.112.3
    Germany11.411.511.712.012.712.9March
    Greece10.216.213.612.510.610.7June
    Iceland10.410.69.711.312.310.6June
    Ireland11.010.49.711.212.5
    Italy11.310.610.110.411.2
    Luxembourg12.612.913.113.715.017.2June
    Netherlands11.411.211.311.411.911.7September
    Norway12.412.412.112.212.8
    Portugal11.110.89.29.59.89.8June
    Spain12.912.612.513.012.212.2June
    Sweden10.411.49.910.010.110.1September
    Switzerland11.411.412.811.812.6
    United Kingdom313.214.013.013.212.212.4June
    Asia
    Bangladesh7.37.46.76.77.5
    China
    Hong Kong SAR18.518.717.816.515.715.6September
    India11.611.211.111.411.912.6March
    Indonesia-13.0-2.4-18.219.219.721.4June
    Korea8.210.810.510.810.510.4June
    Malaysia11.812.512.513.013.213.4June
    Mongolia20.427.124.619.8
    Pakistan10.910.99.78.88.89.2June
    Philippines17.717.516.215.816.716.1September
    Singapore18.120.619.618.116.917.8September
    Sri Lanka10.710.68.37.88.17.6December
    Thailand10.912.412.013.913.713.6August
    Middle East and North Africa
    Algeria8.711.3
    Egypt
    Jordan19.617.518.7
    Kuwait23.722.222.019.7
    Lebanon18.915.016.918.019.422.5June
    Morocco12.612.112.812.612.5September
    Oman16.516.515.616.9
    Saudi Arabia21.221.221.020.318.719.0June
    Tunisia11.711.613.310.610.6
    Sub-Saharan Africa
    Ghana11.111.511.614.713.4
    Kenya17.517.117.417.2July
    Mauritius11.913.312.313.013.1
    Nigeria12.719.017.516.1
    South Africa11.512.614.511.412.612.8September
    Tanzania6.53.89.69.68.6
    Uganda11.013.620.523.123.720.5December
    Zimbabwe44.044.530.628.5September
    Other
    Australia10.310.19.810.59.910.6September
    Canada10.711.711.912.312.412.9September
    Japan49.611.912.211.710.8September
    United States511.611.611.712.412.512.7September
    Sources: National authorities; OECD; IMF staff estimates.

    Private banks.

    For 2002 excludes suspended banks and mortgage bank.

    Includes mortgage banks.

    All internationally active banks.

    U.S. banks with assets greater than $1 billion.

    Table 23.Bank Capital to Assets(In percent)
    199819992000200120022003Latest
    Latin America
    Argentina11.310.610.112.513.110.6November
    Bahamas
    Bolivia8.59.29.810.511.911.5September
    Brazil10.511.612.113.613.516.9October
    Chile7.57.77.57.27.27.5June
    Colombia9.610.910.19.49.311.5November
    Costa Rica9.810.910.812.912.613.4November
    Dominican Republic9.410.010.77.6October
    Ecuador14.512.912.98.810.310.6September
    Honduras9.910.09.810.09.1
    Jamaica21.519.616.215.514.213.9November
    Mexico8.38.09.69.411.111.8September
    Paraguay14.912.612.412.110.98.7December
    Peru8.78.99.19.810.110.6November
    Uruguay15.314.711.78.1-2.27.0October
    Venezuela14.013.512.414.316.114.2November
    Emerging Europe
    Armenia11.711.812.313.615.013.5November
    Bulgaria14.015.315.213.613.313.2September
    Croatia18.315.211.910.49.49.4September
    Czech Republic7.97.98.26.76.86.5March
    Estonia20.819.215.215.213.712.9November
    Hungary9.79.79.89.510.09.8December
    Israel6.76.87.37.76.57.5November
    Kyrgyz Republic22.115.520.531.527.7June
    Latvia3.72.08.59.18.88.6November
    Lithuania13.99.99.29.49.99.8December
    Macedonia
    Malta5.76.56.76.6
    Poland7.07.17.18.08.78.5September
    Russia14.312.912.512.4June
    Slovak Republic9.88.75.97.99.89.6July
    Slovenia10.18.88.37.8December
    Turkey8.75.26.19.69.7June
    Ukraine17.516.615.514.6March
    Western Europe
    Austria4.95.25.25.15.65.8December
    Belgium4.04.14.64.44.74.3December
    Denmark6.36.16.76.25.2
    Finland5.95.66.310.210.19.6December
    France6.46.86.76.76.76.6March
    Germany4.04.14.24.34.54.6March
    Greece10.18.99.29.47.6December
    Iceland7.06.86.46.66.3
    Ireland7.27.36.55.95.55.2December
    Italy6.77.06.97.27.27.0March
    Luxembourg3.53.83.93.93.73.8February
    Netherlands5.04.85.14.84.74.3December
    Norway6.06.66.46.05.55.4May
    Portugal6.35.85.55.65.8September
    Spain7.16.67.57.27.3November
    Sweden5.05.55.35.65.2
    Switzerland4.34.54.84.54.2March
    United Kingdom17.07.56.56.66.7June
    Asia
    Bangladesh5.14.44.44.4
    China5.25.35.14.6
    Hong Kong SAR7.78.19.09.810.7115March
    India6.25.95.35.15.6March
    Indonesia-12.9-4.15.25.47.38.3June
    Korea2.83.93.84.14.04.0June
    Malaysia8.98.98.58.58.7November
    Mongolia16.517.318.417.615.414.7June
    Pakistan4.14.34.44.33.3
    Philippines14.816.015.315.415.515.9October
    Singapore7.57.87.19.68.38.5March
    Sri Lanka5.94.33.73.8
    Thailand4.85.54.55.55.86.2August
    Middle East and North Africa
    Algeria4.55.6
    Egypt5.15.45.34.94.75.0September
    Jordan7.87.86.9
    Kuwait12.612.412.211.1
    Lebanon6.66.66.46.26.46.2October
    Morocco9.89.99.29.38.98.2November
    Oman13.013.012.612.5
    Saudi Arabia10.09.69.79.910.210.8June
    Tunisia
    Sub-Saharan Africa
    Ghana12.211.911.812.512.012.0August
    Kenya10.78.98.78.88.07.9November
    Mauritius7.18.17.88.49.3
    Nigeria9.38.27.48.69.5March
    South Africa8.28.28.77.88.27.2March
    Tanzania6.53.89.69.68.6
    Uganda7.09.810.09.59.9December
    Zimbabwe8.09.49.49.39.59.0September
    Other
    Australia7.67.36.97.16.36.1September
    Canada4.24.74.74.64.64.7November
    Japan2.44.64.84.23.0September
    United States28.28.18.28.99.08.9September
    Sources: National authorities; EDSS; OECD; IMF staff estimates.

    Data for U.K. large commercial banks (exclusive of mortgage banks and other banks).

    U.S. banks with assets greater than $1 billion.

    Table 24.Bank Nonperforming Loans to Total Loans(In percent)
    199819992000200120022003Latest
    Latin America
    Argentina15.37.18.713.217.522.7November
    Bahamas6.25.15.14.84.4
    Bolivia4.66.611.616.217.616.7December
    Brazil***10.28.78.45.75.35.7June
    Chile1.51.71.71.61.81.8September
    Colombia10.713.611.010.08.77.4November
    Costa Rica3.82.93.72.52.8June
    Dominican Republic2.62.64.912.0October
    Ecuador8.126.031.027.88.59.6September
    Honduras11.211.212.513.012.4
    Jamaica9.56.13.7
    Mexico11.3895.85.14.63.7September
    Paraguay28.19.311.812.314.720.6December
    Peru7.08.79.89.07.65.8December
    Uruguay2,38.78.59.313.9
    Venezuela5.57.86.67.19.29.7September
    Emerging Europe
    Armenia6.08.06.26.04.96.7September
    Bulgaria**16.413.98.27.05.56.0September
    Croatia***9.310.39.57.25.85.2September
    Czech Republic20.322.019.913.710.65.3September
    Estonia1.41.71.01.30.80.4December
    Hungary4.94.23.02.22.01.7September
    Israel9.99.06.7