Back Matter

Back Matter

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
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    Glossary401(k)

    U.S. tax-deferred retirement plan that allows workers to contribute a percentage of their pre-tax salary for investment in stocks, bonds or other securities. The employer may match all of employees’ contributions.

    Accrued benefit

    Amount of accumulated pension benefits of a pension plan member.

    Accumulated benefit obligation (ABO)

    Present value of pension benefits promised by a company to its employees, at a particular date and based on current salaries.

    Actuarial gain/loss

    An actuarial gain (toss) appears when actual experience is more (less) favorable than the actuary’s estimate.

    Annuity

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

    Asset/liability management (ALM)

    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.

    Ranking soundness

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

    Beneficiary

    Individual who is entitled to a pension benefit (including the pension plan member and dependants).

    Book reserve scheme (also known as Direktzusage)

    In Germany, accounting system whereby the actuarial value of future pension benefits appears as a liability, but is not offset by any specific provision, on the sponsor company’s balance sheet.

    Brady bonds

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

    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.

    Corporate governance

    The governing relationships between all the stakeholders in a company—including the shareholders, directors, and management—as defined by the corporate charter, bylaw’s, 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 risk

    The risk that a counterparty to the insurer is unable or on willing 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 plan

    Pension plan in which benefits are determined by such (actors as salary history and duration of employment. The sponsor company is responsible for the investment risk and portfolio management.

    Defined contribution plan

    Pension plan in which benefits are determined by returns on the plan’s investments. Beneficiaries beat the investment risk.

    Dependency ratio

    Ratio of pensioners to those of working age in a given population.

    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.

    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.

    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).

    Funded pension plan

    Pension plan that has accumulated dedicated assets to pay for the pension benefits.

    Funding gap

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

    Funding ratio

    Ratio of the amount of assets accumulated by a defined benefit pension plan to the sum of promised benefits.

    Hedge funds

    Investment pools, typically organized as private partnerships and often resident offshore for tax and regulatory purposes. These funds lace few restrictions on their portfolios and transactions. Consequently, the 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.

    Hybrid pension plan

    Retirement plan that has characteristics typical of both defined benefit and defined contribution plans.

    Individual retirement account (IRA)

    In the U.S., tax-deferred retirement plan permitting all individuals to set aside a fraction of their wages (additional contributions are possible on a non-deductible basis).

    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 investment-grade bonds as BBB or higher, and Month’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 he build up by borrowing (on-balance-sheet leverage, commonly measured by debt-to-equity ratios) or by using off-balance-sheet transactions.

    Lump sum payment

    Withdrawal of accumulated benefits all at once, as opposed to in regular installments.

    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.

    Nonperforming loans

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

    Occupational pension scheme

    Pension plan set up and managed by a sponsor company for die benefit of its employees.

    Offshore instruments

    Securities issued outside of national boundaries.

    Overfunded plan

    Defined benefit pension plan in which assets accumulated are greater than the sum of promised benefits.

    Pair-wise correlations

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

    Pay-as-you-go basis (PAYG)

    Arrangement under which benefits are paid out of revenue over each period, instead no funding is made for future liabilities.

    Pension benefit

    Benefit paid to a participant (beneficiary) in a pension plan.

    Pension contribution

    Payment made to a pension plan by the sponsor company or by plan participants.

    Primary market

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

    Private pension plan

    Pension plan where a private entity receives pension contributions and administers the payment of pension benefits.

    Projected benefit obligation (PBO)

    Present value of pension benefits promised by a company to its employees at a particular date, and including assumption about future salary increases (i.e. assuming that the plan will not terminate in the foreseeable future).

    Public pension plan

    Pension plan where the general government administers the payment of pension benefits (e.g. Social security and similar schemes).

    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.

    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.

    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.

    Sponsor company

    Company that designs, negotiates, and normally helps to administer an occupational plan for its employees and members.

    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.

    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.

    Trustee

    Private entity (person or organization) with a duly to receive, manage and disburse the assets of a plan.

    Underfunded plan

    Defined benefit pension plan in which assets accumulated are smaller than the sum of promised benefits.

    Unfunded benefit liability

    Amount of promised pension benefits that exceeds a plan’s assets.

    Vesting

    Right of an employee, on termination of employment, to obtain part or all of his accrued benefits.

    With-profits policies

    The insurance company guarantees to pay an agreed amount al a specific time in the future, and may increase this guaranteed amount through bonus payments. In effect, the policy holders 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 lime for debt securities having equal credit risk but different maturity dates.

    ANNEX SUMMING UP BY THE CHAIRMAN

    The following remarks by the Chairman were made at the conclusion of the Executive Board’s discussion of the Global Financial Stability Report on August 30, 2004.

    Executive Directors had a wide-ranging discussion of financial market developments, prospects, and risks as part of the IMF’s surveillance over global financial stability. They welcomed the further strengthening of global financial stability and of key financial intermediaries in the past six months. Directors considered that the combination of broadening global economic growth and low inflationary expectations has created a favorable environment for financial markets. Strong economic growth has boosted corporate and banking sector earnings, facilitated further balance sheet strengthening, and improved credit quality. At the same time, subdued inflationary pressure has contributed to stability and relatively low yields in the major bond markets. This environment has also benefited emerging markets, boosting their growth prospects and credit quality, and facilitating the availability of external financing at relatively low cost. Notwithstanding these favorable developments, Directors noted a number of important risks that remain, suggesting that there is no room for complacency.

    Global Financial Market Surveillance

    Directors noted that financial markets are adjusting well to the interest rate tightening cycle in mature markets. Markets had been fully prepared for, and responded calmly to, the gradual increases in the U.S. Federal funds rate in June and August 2004. The clear communication by the U.S. Federal Reserve Board of its intention to raise rates contributed to an orderly and timely reduction of speculative leveraged positions that had been built up during a period of exceptionally low interest rates and a relatively steep yield curve. The widespread expectation that continued low inflationary pressure would permit a gradual pace of tightening has also promoted market calm, and volatility across a wide range of assets has remained quite low.

    Directors welcomed the further strengthening of corporate, financial, and household sector balance sheets. Increased corporate earnings have contributed to reduced leverage and the accumulation of cash balances in the corporate sector, especially in the United States. Financial intermediaries in the major financial centers have increased their ability to absorb shocks, thus contributing to the improved outlook for financial stability. Although balance sheets of households have strengthened, their debt burden remains high, and Directors pointed to the possibility that this indebtedness could increase the sensitivity of households to economic shocks and amplify any future economic downturn.

    Directors noted that the combination of broadening global economic growth, gently rising interest rates, and continued investor appetite for risk have sustained a favorable external financing environment for emerging market countries. Despite some limited turbulence in April and May as markets adjusted to the prospect of higher U.S. interest rates, emerging markets also appear to be taking the transition to tightening in stride. Spreads on emerging market bonds remain at low levels and the appetite for new emerging market issuance is strong, while markets are differentiating more based on fundamentals. Many emerging market borrowers have appropriately taken advantage of the receptive external environment to meet the bulk of their financing needs for 2004 and to begin prefinancing for 2005. Directors welcomed steps taken by several emerging markets to strengthen their public finances and improve the structure of public debt. Directors also noted that banking systems in the major emerging markets have continued to recover, with generally improving capital positions, asset quality, and earnings.

    Directors identified several remaining risks to the outlook for financial stability. An unanticipated increase in inflation could transform the market’s assumptions about the likely pace of tightening, and result in market turbulence. In that event, bond yields and credit spreads in the United States and elsewhere could overshoot, and hedges against interest rate increases adopted by investors and banks would be tested. Rising interest rates in the major financial centers could also result, as they have in the past, in a less hospitable financing environment for emerging markets. Directors noted, however, that the effective communication strategy pursued so far by the U.S. Federal Reserve Board has helped manage market expectations and limit market volatility. Moreover, the monetary authorities in several mature markets have appropriately indicated that they will respond in a timely way to conditions that potentially threaten price stability. Directors called for close monitoring of the potential impact of continued high oil prices on bond and equity markets.

    Directors also discussed the potential for market instability arising from the continued large global external imbalances. Most Directors considered that the persistence of these imbalances and the magnitude of the flows involved remain a potential source of vulnerability in currency markets that could spill over to other asset classes. Directors reiterated that a key policy priority for the international community will remain the pursuit of a cooperative international effort to reduce these imbalances over the medium term.

    Directors stressed that emerging market countries should use the current favorable financing environment to increase their resilience to future external shocks and press ahead with growth-enhancing structural reforms. Measures to reduce public debt to manageable levels and to improve the structure of public debt remain key priorities for many emerging markets.

    Directors welcomed the opportunity to review several structural issues affecting financial stability. They welcomed staff’s work to develop market and credit risk indicators for the mature banking system, assess the linkages of energy trading markets with other financial markets and with underlying supply and demand conditions for energy products, and review the various channels through which financial risk is being transferred from the banking sector to nonbanking institutions.

    Directors noted that large capital inflows into hedge funds in recent years, particularly by institutional investors, indicated that hedge funds are an important investor group in global financial markets. Hedge funds are a heterogeneous group engaged in a wide range of dynamic investment strategies. Counterparty risk management by large banks and prime brokers with regard to hedge funds has strengthened in recent years, and hedge fund leverage is currently at relatively moderate levels. Nonetheless, most Directors agreed that more information about hedge funds and their market activities would be helpful in addressing questions about how this important investor group can affect market stability. Several Directors considered that improved transparency and disclosure by hedge funds to investors and counterparties would serve to further strengthen market surveillance and stability. A number of Directors also saw room for closer monitoring of hedge funds by the official sector to achieve a better understanding of hedge funds, their market activities, and potential impact on financial stability, with a few considering that some form of regulation of the industry is unavoidable.

    Risk Management in the Pension Fund Industry

    Directors continued their review of issues raised by the transfer of risk in mature markets from banking to nonbanking institutions, and welcomed the staff’s analysis of the pension fund industry. The size and projected growth of pension funds highlight their growing importance for international capital markets and financial stability and their role as a long-term institutional investor. Directors acknowledged that the roles of state pensions, pension plans in the workplace, and individual savings plans in contributing to retirement pensions vary from country to country. Among workplace pension plans, well-designed defined benefit, defined contribution, and hybrid plans can all continue to play a role in encouraging efficient savings for retirement.

    Directors agreed that, while the 2000-02 market downturn had exposed longer-term vulnerabilities at many pension funds, the recent partial recovery in funding ratios provides a window of opportunity for policymakers to introduce measures to encourage better risk management practices and more stable funding strategies. Among such measures, Directors emphasized the development of deeper markets for long-term fixed-income and index-linked instruments to allow pension funds to better match assets and liabilities; regulatory policies that are more closely aligned with the purpose and liability structure of pension funds; the removal or reduction of tax or regulatory obstacles to prudent, continuous funding policies; the development of risk-based approaches to supervision and to guarantee fund premiums; and the promotion of international diversification of pension assets. Directors welcomed the current debate on international accounting standards for pension assets and liabilities, and agreed that accounting standards should provide an accurate reflection of the financial condition of companies, including their pension plans. Disclosure should be comprehensive, and should include information on sensitivities and risks.

    Directors noted that employers and governments have become more aware of the funding challenges pensions face from aging populations and the investment risks involved in funded pension plans. They underscored the importance of effective communication of pension challenges and policy priorities to ensure broad-based public understanding and support of pension reform efforts. In many countries, reductions in state pensions and movements from defined benefit to defined contribution or hybrid pension plans by employers are increasingly transferring risks—including market and longevity risks—to the household sector. This raises the question of how well equipped households are to bear such risks. Directors looked forward to discussing the fund management industry and risk transfer to the household sector in the next issue of the GFSR.

    Emerging Markets as Net Capital Exporters

    Directors welcomed the discussion of emerging market countries as net capital exporters, in light of the conventional wisdom suggesting that capital normally flows from capital-rich mature markets to capital-scarce emerging markets. They found useful the emphasis placed on financial and balance sheet issues in the staff’s analysis of the current episode of net capital outflows, which follows a series of financial crises in emerging markets, as well as changes in global asset allocations and macroeconomic imbalances.

    Directors noted that the post-crisis adjustment process in many emerging markets involved substantial restructuring and strengthening of balance sheets in the private and official sectors. In particular, the period 2000-01 was characterized by an important reduction of external liabilities. The reversal in capital inflows and the ensuing external deleveraging process were particularly costly, and Directors stressed the need to improve mechanisms for post crisis balance sheet adjustments—including those that facilitate the transfer of corporate ownership and control, and improve the environment for domestic and foreign investment as well as the functioning of markets for distressed debt.

    Directors noted that the shift of emerging markets as net capital exporters during 2002-04 was associated with an unprecedented increase in their net international reserves. This in turn was related to their pursuit of export-led growth policies, supported by competitive exchange rates. Directors acknowledged the challenges involved in establishing a general benchmark for what constitutes a desirable level of international reserves, as circumstances and vulnerabilities differ from country to country. In some cases, the official sector built up reserves beyond pre-crisis levels for precautionary or self-insurance reasons. More generally, Directors considered that policymakers should continue to explore alternative methods to self-insure against sudden reversals in capital flows, including through financial sector reforms and the development of local securities markets, as well as ways to improve the management of international reserves. Several Directors reiterated their call for the IMF to continue to explore the development of effective lending instruments for crisis prevention.

    Directors also noted that as emerging market securities become mainstream assets in global portfolios, global factors such as risk-adjusted returns in competing assets, and macroeconomic imbalances in mature markets, are likely to be key determinants of flows. Directors called on emerging market countries to establish a track record of consistently strong policies and reforms to enhance their risk-adjusted returns in order to attract stable inflows. Directors also noted that an orderly resolution of global current account imbalances will contribute to an environment that is conducive to sustained private capital flows to emerging markets.

    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 July 30, 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 1-14 and Tables 1-9 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 10-21 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 22-28 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

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

    Source: International Monetary Fund, World Economic Outlook database as of August 30, 2004.

    1As measured by countries’ current account surplus (assuming errors and omissions are part of the capital and financial accounts).

    2Other countries include all countries with shares of total surplus less than 2.1 percent.

    3As measured by countries’ current account deficit (assuming errors and omissions are part of the capital and financial accounts).

    4Other countries include all countries with shares of total deficit less than 1.2 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 rolling 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

    Sources: 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
    1993199419951996199719981999200020012002200319931994199519961997199819992000200120022003
    United States
    Direct investment51.446.157.886.5105.6179.0289.4321.3167.072.439.9-84.0-80.2-98.8-91.9-104.8-142.6-224.9-159.2-142.4-134.8-173.8
    Portfolio investment111.0139.4210.4332.8333.1187.6285.6436.6428.3427.9544.5-146.2-63.2-122.4-149.3-116.9-124.2-116.2-121.9-84.615.9-72.3
    Other investment119.7120.5170.4131.8268.157.0165.2289.0187.5268.0244.831.0-40.9-121.4-178.9-262.8-74.2-171.2-288.4-134.9-75.4-38.8
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-1.45.3-9.76.7-1.0-6.78.7-0.3-4.9-3.71.5
    Total capital flows282.1306.0438.6551.1706.8423.6740.21,046.9782.9768.2829.2-200.5-178.9-352.3-413.4-485.5-347.8-503.7-569.8-366.8-198.0-283.4
    Canada
    Direct investment4.78.29.39.611.522.724.866.127.520.96.3-5.7-9.3-11.5-13.1-23.1-34.1-17.3-44.5-36.2-26.5-22.2
    Portfolio investment41.417.218.413.711.716.62.710.324.613.413.2-13.8-6.6-5.3-14.2-8.6-15.1-15.6-43.0-24.4-15.9-9.1
    Other investment-6.716.0-3.915.728.05.4-10.80.87.55.010.9-0.4-20.4-8.3-21.1-16.29.410.2-4.2-10.5-8.5-20.6
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-0.90.4-2.7-5.52.4-5.0-5.9-3.7-2.20.23.3
    Total capital flows39.441.423.939.151.244.816.677.259.739.330.3-20.8-35.9-27.9-53.9-45.4-44.8-28.5-95.4-73.3-50.7-48.7
    Japan
    Direct investment0.10.90.23.23.312.38.26.29.16.2-13.8-18.1-22.5-23.4-26.1-24.6-22.3-31.5-38.5-32.0-28.8
    Portfolio investment-6.164.559.866.879.256.1126.947.460.5-20.081.2-63.7-92.0-86.0-100.6-47.1-95.2-154.4-83.4-106.8-85.9-176.3
    Other investment-32.7-5.697.331.168.0-93.3-265.1-10.2-17.626.634.115.1-35.1-102.25.2-192.037.9266.3-4.146.636.4149.9
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-27.5-25.3-58.6-35.1-6.66.2-78.3-49.0-40.5-46.1-187.2
    Total capital flows-38.759.8157.198.1150.4-34.0-125.945.449.115.7121.5-90.0-170.4-269.4-154.0-271.6-75.813.4-168.0-139.2-127.7-242.3
    United Kingdom
    Direct investment16.510.721.727.437.474.789.5122.253.829.215.5-27.3-34.9-45.3-34.8-62.4-122.1-201.6-245.4-59.7-34.2-51.2
    Portfolio investment43.647.058.868.043.535.2183.9255.669.676.6149.3-133.631.5-61.7-93.1-85.1-53.2-34.2-97.1-124.71.2-56.3
    Other investment191.4-10.8106.2254.4328.5103.983.6423.2333.291.1410.4-63.5-42.4-74.9-217.8-276.0-29.8-92.8-417.5-254.7-150.5-432.3
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-1.3-1.50.90.73.90.31.0-5.34.50.62.6
    Total capital flows251.646.9186.7349.1409.4213.7357.1801.0456.6196.9575.3-230.5-47.4-181.0-345.1-419.6-204.9-327.5-765.3-434.6-182.9-537.1
    Euro area2
    Direct investment209.7404.8182.5138.2117.9-338.2-404.9-283.1-141.9-133.9
    Portfolio investment282.9270.7311.3273.7342.7-330.5-385.2-252.8-162.6-321.8
    Other investment208.3337.2241.162.6185.3-31.0-166.2-244.0-224.2-265.7
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.11.616.216.5-2.635.1
    Total capital (lows700.81,012.7734.8474.6645.9-688.1-940.1-763.3-531.3-686.4
    Emerging Markets and Developing Countries3
    Direct investment70.095.7124.0145.0182.3179.4207.5213.5224.0166.5175.7-16.1-14.8-23.5-28.6-37.3-24.2-33.6-36.5-32.8-23.5-28.7
    Portfolio investment94.793.537.5113.486.235.0113.374.7-8.1-22.062.01.1-1.4-14.1-31.5-33.10.5-53.2-81.6-95.7-86.1-105.2
    Other investment40.218.8137.786.7168.4-108.5-64.4-11.6-43.625.595.0-25.0-65.9-53.3-95.5-140.637.5-76.5-145.911.9-6.1-114.7
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.-64.2-68.2-130.7-90.6-103.6-34.0-92.3-115.1-113.3-196.7-366.6
    Total capital flows204.9208.0299.1345.1437.0105.9256.3276.6172.3170.0332.8-104.2-150.3-221.6-246.3-314.6-20.2-255.7-379.1-229.9-312.4-615.2
    Sources: International Monetary Fund, World Economic Outlook database as of August 30, 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)
    199619971998199920002001200220032004:Q1
    Amounts outstanding of international debt securities by currency of issue
    U.S. dollar1,112.61,432.91,832.62,356.52,907.13,609.64,045.94,492.54,649.5
    Japanese yen462.9444.4462.6497.5452.5411.5433.3488.6510.4
    Pound sterling225.7266.7322.4391.1452.6506.0618.6778.7832.3
    Canadian dollar76.567.255.556.451.547.551.579.384.7
    Swedish krona5.14.17.57.27.78.211.115.615.4
    Swiss franc151.2138.5153.5135.5132.0123.6159.1195.6194.1
    Euro1832.7848.91,133.91,451.61,769.22,288.73,283.14,834.54,932.5
    Other68.478.884.398.597.3110.2152.3217.7236.9
    Total2,935.13,281.54,052.34,994.35,869.97,105.38,754.911,102.511,455.8
    Net issues of international debt securities by currency of issue
    U.S. dollar238.7320.3399.7399.7524.4550.5436.3446.680.9
    Japanese yen81.734.0-33.0-33.0-23.510.9-17.54.0-3.4
    Pound sterling30.846.453.953.977.892.152.386.116.4
    Canadian dollar-6.5-6.2-7.5-7.5-2.3-2.83.615.60.1
    Swedish krona0.2-0.43.63.60.11.21.12.00.9
    Swiss franc-1.3-1.66.36.34.0-0.28.015.81.5
    Euro1140.0130.2214.6214.6507.1423.7494.8786.2195.3
    Other13.323.28.98.914.79.131.138.8192.8
    Total496.9545.9646.5646.51,102.31,084.51,009.71,395.1484.5
    Announced international syndicated credit facilities by nationality of borrower
    All countries839.31,080.6905.31,025.81,464.91,388.81,299.71,241.4244.1
    Industrial countries732.0903.6819.4960.01,328.61,276.61,200.61,129.8218.3
    Of which:
    United States482.2606.7575.1623.0805.6850.2736.9609.4132.0
    Japan6.86.111.415.417.523.819.518.210.4
    Germany17.623.615.534.042.435.885.297.111.5
    France23.338.719.833.772.950.163.965.815.2
    Italy5.910.16.016.134.936.022.945.30.0
    United Kingdom68.4101.379.8109.0131.2105.7110.0104.022.6
    Canada25.737.641.422.837.840.635.128.42.5
    Source: Bank for International Settlements.

    For 1996-98, the euro includes euro area currencies.

    Table 3.Selected Indicators on the Size of the Capital Markets, 2003(In billions of U.S. dollars unless noted otherwise)
    GDPTotal Reserves Minus Gold1Stock Market CapitalizationDebt SecuritiesBank Assets2Bonds, Equities, and Bank Assets3Bonds, Equities, and Bank Assets3 (In percent of GDP)
    PublicPrivateTotal
    World36,163.43,142.331,202.320,242.431,722.751,965.140,627.8123,795.2342.3
    European Union10,513.1285.37,754.06,276.710,436.816,713.518,148.742,616.2405.4
    Euro area8,202.0186.64,882.85,480.07,966.213,446.213,136.131,762.5387.3
    North America11,852.4111.115,154.75,626.816,358.321,985.16,800.343,940.1370.7
    Canada866.936.2888.7601.8370.6972.41,100.32,961.4341.6
    United States10,985.574.914,266.05,025.015,987.721,012.75,700.040,978.7373.0
    Japan4,301.8663.34,904.66,154.02,260.88,414.86,218.719,538.1454.2
    Memorandum items:
    EU countries
    Austria253.68.556.5203.1199.7402.8282.6741.9292.6
    Belgium303.111.0170.7382.4314.2696.6953.51,820.8600.8
    Denmark210.837.1118.2115.5314.7430.2426.1974.5462.2
    Finland162.210.5170.3110.770.8181.5297.4649.2400.3
    France1,754.330.21,237.61,045.81,538.92,584.73,495.97,318.2417.2
    Germany2.408.650.71,079.01,165.02,881.44,046.42,890.18,015.5332.8
    Greece174.14.4103.8225.321.2246.5176.7527.0302.8
    Ireland149.24.185.139.2137.1176.3500.3761.7510.6
    Italy1,470.930.4614.81,498.71,115.42,614.11,791.85,020.8341.3
    Luxembourg25.90.337.30.038.538.5544.4620.22,393.8
    Netherlands512.711.0539.0257.8910.31,168.11,411.13,118.1608.2
    Portugal147.55.962.4106.8120.1226.9174.5463.8314.4
    Spain840.119.8726.2445.2618.61,063.8915.32,705.3322.0
    Sweden301.819.7293.0167.5265.5433.0288.61,014.6336.2
    United Kingdom1,798.641.92,460.1513.71,890.42,404.14,000.58,864.7492.9
    Emerging market countries8,356.51,937.73,947.31,889.31,223.73,113.06,532.413,592.8162.7
    Of which
    Asia3,871.21,246.22,942.8795.4930.11,725.54,347.09,015.3232.9
    Latin America1,728.4195.7608.1634.6212.3846.9776.42,231.3129.1
    Middle East812.3149.596.410.112.722.8693.2812.4100.0
    Africa553.891.9168.371.626.397.9334.3600.4108.4
    Europe1,390.9252.5131.8377.642.3419.9381.6933.367.1
    Sources: World Federation of Exchanges; Bank for International Settlements; International Monetary Fund, International Financial Statistics (IFS) and World Economic Outlook; and ©2003 Bureau van Dijk Electronic Publishing-Bankscope.

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

    Assets of commercial banks; data refer to 2002.

    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-Dec 2001End-June 2002End-Dec. Z002End-June 2003End-Dec. 2003End-Dec. 2001End-June 2002End-Dec. 2002End-June 2003End-Dec. 2003
    Total111,178127,509141,679169,678197,1773,7884,4506,3607,9086,987
    Foreign exchange16,74818,06B18,46022,08824,4847791,0528819961,301
    Outright forwards and to rex swaps10,33610,42610,71912,33212,387374615468476607
    Currency swaps3,9424,2154,5035,1596,371335340337419557
    Options2,4703,4273,2384,5975,726709776101136
    Interest rate277,56889,955101,658121,799141,9912,2102,4674,2665,4594,328
    Forward rate agreements7,7379,1468,79210,27110,7691919222019
    Swaps58,89768,23479,12094,583111,2091,9692,2133,3645,0043,918
    Options10,93312,57513,74616,94620,012222235381434391
    Equity-linked1,8812,2142,3092,7993,787205243255260274
    Forwards and swaps3203863644886015862616757
    Options1,5611,8281,9442,3113,186147181194193217
    Commodity35967779231,0401,406757986110128
    Gold2312793153043442028282239
    Other3674986087361,0625651588888
    Forwards and swaps217290402458420
    Options150208206279642
    Other14,38416,49618,33021,95225,5105196098711,083957
    Memorandum items:
    Gross credit exposure4n.a.n.a.n.a.n.a.n.a.1,1711,3171,5111,7501,986
    Exchange-traded derivatives16,74818,06818,46022,08824,484
    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-Dec. 2001End-June 2002End-Dec. Z002End-June 2003End-Dec. 2003End-Dec. 2001End-June 2002End-Dec. 2002End-June 2003End-Dec. 2003
    Total111,178127,509141,679163,678197,1773,7884,4506,3607,9086,987
    Foreign exchange16,74818,06818,46022,08824,4847791,0528619961,301
    By counter party
    With other reporting dealers5,9126,6026,8457,9608,663237372285234395
    With other financial institutions6,7557,2107,6028,9559,455319421377427535
    With nonfinancial customers4,0814,2564,0125,1726,366224259220286370
    By remaining maturity
    Up to one years213,42714,40114,53317,56118,847
    One to five years22,3402,5372,7193,1283,903
    Over five years29811,1301,2081,3991,735
    By major currency
    U.S. dollar315,41015,97316,50019,40121,4297049488138911,212
    Euro36,3687,2977,8189,91410,145266445429526665
    Japanese yen34,1784,4544,7914,9075,500313254189165217
    Pound sterling32,3152,5222,4623,0934,2866911298114179
    Other35,2255,8905,3495,8617,608206345233296329
    Interest rate477,56889,955101,658121,709141,9912,2102,4674,2665,4594,328
    By counterparty
    With other reporting dealers35,47243,34046,72253,62263,5799121,0311,8482,2661,872
    With other financial institutions32,51036,31043,60753,13357,5649451,0251,8452,4821,768
    With nonfinancial customers9,58610,30411,32815,04420,847353361573710687
    By remaining maturity
    Up to one year227,88633,67436,93844,92746,474
    One to five years230,56634,43740,13746,64658,914
    Over five years219,11521,84424,58330,22636,603
    By major currency
    U.S. dollar27,42732,17834,39940,11046,1789521,1271,9172,2861,734
    Euro26,23030,67138,42950,00055,7936777101,4992,1781,730
    Japanese yen11,79913,43314,65015,27019,526304326378405358
    Pound sterling6,2166,9787,4428,3229,884148151252315228
    Other5,8966,6956,7388,09710,610129153220275278
    Equity-linked1,8812,2142,3092,7993,787205243255260274
    Commodity55987779231,0401,406757986110128
    Other14,38416,49618,33021,95225,5105106098711,083957
    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
    198719881989199019911992199319941995199619971996199920002001200220032004:Q1
    (In billions of U.S. dollars)(In billions of U.S. dollars)
    Notional principal amounts outstanding
    Interest rate futures487.7895.41,201.01,454.82,157.42,913.14,960.45,807.65,876.25,979.07,586.78,031.47,924.87,907.89,269.59,955.613,123.116,234.4
    Interest rate options122.6279.0386.0595.41,069.61,333.82,361.42,623.22,741.83,277.83,639.94,623.53,755.54,734.212,492.811,759.520,793.826,285.1
    Currency futures14.612.116.017.018.326.534.740.433.837.742.331.736.774.465.647.030.175.2
    Currency options59.548.050.256.562.971.675.955.7120.4133.4118.649.222.421.427.427.437.944.6
    Stock market index futures17.627.041.169.176.079.8110.0127.7172.2195.7211.3291.5340.3371.5333.9325.5501.8549.5
    Stock market index options27.742.770.293.6136.9163.7232.4242.8337.7394.5808.7907.41,510.21,148.31,574.81,700.22,196.92,681.2
    Total729.71,304.11,764.52,286.43,521.24,638.57,774.98,897.39,282.010,017.912,407.513,934.713,589.914,257.723,764.123,815.236,733.545,869.9
    North America577.8951.31,153.51,264.42,153.02,698.74,360.74,823.64,852.44,841.06,348.37,355.16,930.68,167.916,203.213,693.819,503.923,737.1
    Europe13.3177.4250.9461.4710.71,114.41,777.91,831.82,241.32,828.13,587.44,397.14,008.54,197.46,141.38,800.415,405.319,864.5
    Asia-Pacific138.5175.5360.1560.5657.0823.51,606.02,171.81,990.22,154.02,235.71,882.52,401.31,606.21,308.41,191.71,607.62,073.7
    Other0.10.00.00.10.51.930.370.1198.1194.3236.1300.0249.5286.2111.2129.3216.7194.6
    (In millions of contracts traded)(In millions of contracts traded)
    Annual turnover
    Interest rate futures145.7156.4201.0219.1230.9330.1427.0628.5561.0612.2701.6760.0672.7781.21,057.51,152.01,576.8454.6
    Interest rate options29.330.539.552.050.864.882.9116.6225.5151.1116.7129.6117.9107.6199.6240.3302.292.4
    Currency futures21.222.528.229.730.031.339.069.899.673.673.554.637.243.649.142.758.718.7
    Currency options18.318.220.718.922.923.423.721.323.326.321.112.16.87.110.516.114.32.9
    Stock market index futures36.129.630.139.454.652.071.2109.0114.893.9115.9178.0204.8225.2337.1530.2725.7207.7
    Stock market index options139.179.1101.7119.1121.4133.0144.1197.6187.3172.3178.2195.1322.5481.41,148.22,235.43,233.9728.6
    Total389.6336.3421.2478.2510.4635.6787.91,142.91,211.61,129.31,207.21,329.41,361.91,646.12,802.04,216.85,911.71,505.0
    North America318.3252.3288.0312.3302.6341.4382.4513.5455.0428.4463.6530.2463.0461.3675.7912.21,279.7366.3
    Europe35.940.864.383.0110.5185.1263.4398.1354.7391.8482.8525.9604.5718.5957.81,074.81,346.4389.0
    Asia-Pacific30.034.363.679.185.882.998.5131.7126.4115.9126.8170.9207.8331.3985.12,073.13,099.6635.1
    Other5.48.95.33.811.526.243.699.6275.5193.2134.0102.486.6135.0183.4156.7186.064.6
    Source: Bank for International Settlements.
    Table 7.United States: Sectoral Balance Sheets(In percent)
    1997199819992000200120022003
    Corporate sector
    Debt/net worth51.351.351.549.052.251.649.5
    Short-term debt/total debt40.540.433.939.533.730.427.7
    Interest burden111.012.613.415.818.017.315.3
    Household sector
    Net worth/assets85.485.786.185.083.682.082.2
    Equity/total assets29.731.535.030.926.520.724.0
    Equity/financial assets42.945.049.345.040.133.137.9
    Home mortgage debt/total assets9.59.49.19.810.812.312.4
    Consumer credit/total assets3.43.33.13.53.84.03.8
    Total debt financial assets21.020.519.521.824.628.828.1
    Debt service burden212.212.112.412.613.113.313.2
    Banking sector3
    Credit quality
    Nonperforming loans4/total loans1.01.01.01.11.41.51.2
    Net loan losses/average total loans0.70.70.60.71.01.10.9
    Loan-loss reserve/total loans1.81.81.71.71.91.91.8
    Net charge-offs/total loans0.60.70.50.60.81.00.8
    Capital ratios
    Total risk-based capital12.212.212.212.112.712.813.0
    Tier 1 risk-based capital9.69.59.59.49.910.010.5
    Equity capital/total assets8.38.58.48.59.19.29.2
    Core capital (leverage ratio)7.67.57.87.77.87.97.9
    Profitability measures
    Return on average assets (ROA)1.31.31.31.21.21.41.4
    Return on average equity (ROE)15.614.815.714.814.214.915.2
    Net interest margin4.34.04.03.93.94.34.0
    Efficiency ratio559.261.058.758.457.755.856.6
    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)
    FY1997FY1998FY1999FY2000FY2001FY2002FY2003
    Corporate sector
    Debt/shareholders’ equity (book value)207.9189.3182.5156.8156.0146.1121.3
    Short-term debt/total debt41.839.039.437.736.839.037.8
    Interest burden239.146.536.328.432.327.822.0
    Debt/operating profits1,498.51,313.81,472.11,229.31,480.01,370.01079.2
    Memorandum items:
    Total debt/GDP106.5106.2107.5102.0100.098.789.5
    Household sector
    Net worth/assets85.385.185.585.485.185.1
    Equity4.33.15.64.94.55.0
    Real estate40.039.537.536.635.434.1
    Interest burden35.55.35.05.15.04.9
    Memorandum items:
    Debt/equity345.2477.6259.4299.5333.4298.5
    Debt/real estate36.737.838.640.041.943.7
    Debt/net disposable income126.1127.0126.7128.5130.4128.7
    Debt/net worth17.217.516.917.217.417.5
    Equity/net worth5.03.76.55.75.25.9
    Real estate/net worth46.946.443.942.941.640.1
    Total debt/GOP75.977.477.776.477.276.4
    Banking sector
    Credit quality
    Nonperforming loans4/total loans5.56.25.96.38.47.45.8
    Capital ratio
    Stockholders’ equity/assets2.74.24.54.54.03.43.9
    Profitability measures
    Return on equity (ROE)-27.6-18.0-0.6-1.2-16.3-19.3-2.7
    Sources: Ministry of Finance, Financial Statements of Corporations by Industries; Cabinet Office, Economic and Social Research Institute, Annual Report on National Accounts; Japanese Bankers Association, Financial Statements of All 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 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 Sheets1(In percent)
    1997199819992000200120022003
    Corporate sector
    Debt/equity284.082.384.884.484.984.1
    Short-term debt/total debt38.137.337.740.039.037.5
    Interest burden317.216.817.119.020.019.4
    Debt/operating profits263.3258.8288.2315.9326.6337.6
    Memorandum items:
    Financial assets/equity1.71.82.12.01.91.6
    Liquid assets/short-term debt94.592.989.685.689.994.5
    Household sector
    Net worth/assets86.286.186.486.085.083.4
    Equity/net worth14.215.317.917.116.814.6
    Equity/net financial assets37.839.844.043.343.137.7
    Interest burden46.36.76.46.56.36.1
    Memorandum items:
    Nonfinancial assets/net worth61.260.658.559.860.761.7
    Debt/net financial assets45.444.041.443.045.351.2
    Debt/income88.690.993.894.895.098.8
    Banking sector5
    Credit quality
    Nonperforming loans/total loans5.06.15.63.12.63.1
    Loan-loss reserve/nonperforming loans74.776.52.077.079.674.475.8
    Loan-loss reserve/total loans2.12.72.72.72.72.92.9
    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 assets3.73.93.84.14.04.04.1
    Capital funds/liabilities6.16.36.26.66.66.66.6
    Profitability measures
    Return on assets, or ROA (after tax)0.40.40.50.90.40.30.4
    Return on equity, or ROE (after tax)9.711.211.717.49.97.58.9
    Net interest margin1.91.71.41.41.41.61.5
    Efficiency ratio769.568.468.669.471.061.667.8
    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 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.

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

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

    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
    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    World1,027.01,059.21,062.5746.6871.1909.61,036.31,221.31,003.5792.21,036.31,065.8870.01,448.8423.1
    Emerging Markets
    Emerging Markets Free423.1482.1432.2272.3332.7377.6442.8333.8317.4292.1442.8497.3347.1587.1175.3
    EMF Latin America1,100.31,169.51,062.4652.9800.2899.71,100.9915.6876.2658.91,100.91,202.1803.31,352.5185.6
    Argentina881.11,034.6347.3559.9700.1733.0933.61,232.7959.6470.3933.61,090.5619.82,052.2152.6
    Brazil742.9786.9686.4410.1503.1593.2802.0763.2597.1395.4802.0875.9491.31,306.484.1
    Chile783.2779.6762.0446.0560.4694.7800.6604.7568.7445.5800.6862.3592.31,119.6183.0
    Colombia150.1152.8145.865.984.185.5108.642.157.768.3108.6171.184.1183.841.2
    Mexico2,077.92,241.12,114.11,350.91,637.31,708.01,873.11,464.91,698.21,442.81,873.12,301.01,643.22,301.0308.9
    Peru307.9364.7308.8187.1207.8246.1344.1125.0144.1182.7344.1364.7221.1364.773.5
    Venezuela128.5123.0131.767.4125.2145.3103.8106.195.477.7103.8175.799.1278.456.1
    EMF Asia187.3222.1195.0127.2154.4177.5206.4143.6149.7140.4206.4231.7165.4433.0104.1
    China22.524.722.513.916.318.925.522.816.814.125.527.117.3136.912.9
    India217.0230.8201.6132.4151.9188.1246.2173.4141.2148.8246.2258.3157.2323.977.7
    Indonesia960.2892.4927.3474.9633.5728.7831.1456.4437.2519.6831.11,037.9578.01,077.7280.0
    Korea220.2276.1237.3158.0196.7207.7246.0125.6190.4184.7246.0292.9206.4292.959.5
    Malaysia310.7342.6306.5240.6262.8276.8300.4245.2250.7244.0300.4346.7272.8465.788.3
    Pakistan193.0200.7192.4140.7156.9180.4188.299.167.4146.0188.2213.9162.6228.954.4
    Philippines329.2296.1331.8210.6257.0272.6303.7352.6292.2210.1303.7338.9249.3917.3132.6
    Taiwan Province of China228.7277.0248.3184.1210.9250.0259.1222.2255.6189.5259.1300.6224.3483.5103.9
    Thailand242.0240.8245.3138.1170.7199.6280.5102.5107.5130.2280.5286.5173.5669.472.0
    EMF Europe, Middle East, & Africa163.4185.6171.6102.6126.9141.6163.9103.5106.4163.9189.2128.0189.280.8
    Czech Republic176.4191.1178.4123.1126.7142.4152.9107.697.5116.2152.9199.5133.2199.562.8
    Egypt313.7282.6284.2114.4158.5195.6234.6154.9101.997.4234.6318.3149.4318.389.9
    Hungary824.3782.7812.9524.3538.3617.4646.9582.9507.9535.5646.9849.4551.5941.477.1
    Israel148.6156.5167.597.2135.8129.5141.4196.0132.790.8141.4167.5123.4236.267.6
    Jordan265.9250.2252.5157.6182.3213.8238.3116.1149.5153.5238.3266.6194.4266.6103.1
    Morocco191.6188.3189.4142.5163.7186.3171.4198.9180.11,138.5171.4197.2160.8302.199.6
    Poland1,176.11,251.61,218.3797.4914.01,049.81,118.31,307.9891.9861.01,118.31,335.7986.11,792.999.6
    Russia432.1596.7470.5264.6388.6436.1461.1155.2237.8270.7461.1626.8354.1626.830.6
    South Africa284.2302.7278.9227.6244.3258.5296.8244.8309.3272.7296.8320.0255.2350.599.7
    Turkey329,483336,724303,284154,022179,225225,249319,808163,012234,490169,900319,808350,236177,412350,236426
    EMF Sectors
    Energy283.4324.4277.8161.7205.8233.5287.4148.5162.1163.1287.4335.2201.2335.581.7
    Materials230.8253.1222.3163.5178.1206.1250.1140.8173.9182.3250.1268.4192.6268.498.5
    Industrials98.4107.299.260.971.381.498.973.463.861.898.9110.774.7276.852.6
    Consumer discretionary215.2250.9218.7130.8166.8188.0233.8126.0130.6138.8233.8258.3175.9258.374.1
    Consumer staple118.0124.4117.182.8101.1105.7118.6103.194.688.2118.6129.099.4148.680.4
    Healthcare262.8286.6291.6183.8243.9252.9272.5173.9146.5169.8272.5300.7238.0300.783.3
    Financials135.9151.0133.889.5106.8117.9138.8112.6107.798.6138.8155.4108.1185.074.6
    Information technology132.9174.5149.593.5117.2140.7149.6130.9134.2103.9149.6187.3130.8300.073.1
    Telecommunications100.7108.9104.164.680.086.2100.8113.891.972.7100.8112.780.5211.562.9
    Utilities118.9127.7114.372.792.8107.8127.295.791.572.4127.2134.195.0247.863.1

    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.

    Period on Period Percent Change
    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    World-3.32.20.3-5.516.44.413.9-14.1-17.8-21.130.8
    Emerging Markets
    Emerging Markets Free-2.18.9-10.3-6.822.213.517.3-31.8-4.9-8.051.6
    EMF Latin America3.66.2-9.2-0.922.612.422.4-18.4-4.3-21.867.1
    Argentina3.910.8-18.119.125.04.727.4-26.1-22.2-51.098.5
    Brazil8.2-1.9-12.83.722.717.935.2-14.2-21.8-33.8102.9
    Chile2.8-2.6-2.20.125.724.015.2-17.0-6.0-21.779.7
    Colombia2.940.7-4.5-3.527.61.727.0-41.237.118.359.0
    Mexico-1.719.7-5.7-6.421.24.39.7-21.515.9-15.029.8
    Peru-0.36.0-15.32.411.118.439.8-26.715.326.888.4
    Venezuela-2.418.57.0-13.385.816.1-28.50.6-10.0-18.633.6
    EMF Asia-4.07.6-12.2-9.321.414.916.3-42.54.2-6.247.1
    China0.4-3.0-9.1-1.517.116.134.7-32.0-26.0-16.080.3
    India7.6-6.3-12.6-11.014.723.830.9-17.2-18.65.365.5
    Indonesia3.67.43.9-8.633.415.014.1-49.3-4.218.960.0
    Korea-7.212.2-14.1-14.424.55.618.4-44.651.6-3.033.2
    Malaysia1.414.0-10.5-1.49.25.38.6-17.32.3-2.723.1
    Pakistan0.36.6-4.1-3.612.913.64.3-4.3-32.0116.728.9
    Philippines-0.8-2.512.10.222.06.111.4-32.1-17.1-28.144.5
    Taiwan Province of China-7.96.9-10.4-2.914.618.63.6-42.315.0-25.836.7
    Thailand-1.3-14.11.96.023.617.040.5-50.54.921.1115.4
    EMF Europe, Middle East, & Africa-2.013.2-7.4-5.323.711.615.84.751.2
    Czech Republic-1.125.0-6.66.02.912.47.45.5-9.419.231.6
    Egypt10.420.50.517.538.623.419.9-38.4-34.2-4.4140.8
    Hungary1.421.03.9-2.12.714.74.8-19.6-12.95.420.3
    Israel-11.310.77.07.039.7-4.79.224.7-32.3-31.655.7
    Jordan5.35.00.92.715.617.311.4-24.728.82.655.3
    Morocco1.19.80.62.914.91.53.1-20.2-9.5-23.123.8
    Poland-3.511.9-2.7-7.414.614.96.5-4.8-31.8-3.529.9
    Russia-8.229.4-21.2-2.346.912.25.7-30.453.213.970.3
    South Africa1.92.0-7.9-16.67.45.814.8-1.226.3-11.88.3
    Turkey8.65.3-9.9-9.316.425.742.0-33.543.8-27.588.2
    EMF Sectors
    Energy2.012.9-14.4-0.927.213.523.1-24.79.20.676.2
    Materials3.81.2-12.2-10.66.915.821.3-21.023.55.236.8
    Industrials-0.98.4-7.4-1517.214.121.5-41.7-13.1-3.260.1
    Consumer discretionary-1.67.3-12.8-5.827.512.724.3-41.63.66.363.4
    Consumer staple0.84.9-5.8-6.122.14.5122-20.2-8.2-6.734.4
    Healthcare-9.95.21.78.332.73.77.80.7-15.815.960.5
    Financials-2.18.8-8.1-9.319.410.417.7-24.3-4.3-8.440.7
    Information technology-11.116.7-14.3-10.025.320.16.3-44.92.6-22.643.9
    Telecommunications-3.28.0-4.4-11.123.87.717.0-31.1-19.2-20.938.7
    Utilities4.10.4-10.50.527.616.217.9-25.0-4.4-20.975.7

    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.

    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    Developed Markets
    Australia697.6680.5700.6580.4601.6627.1655.5640.1690.8604.4655.5639.6539.9712.9250.2
    Austria154.8141.1150.792.8101.6104.6118.096.994.691.8118.0105.479.7105.496.2
    Belgium66.163.666.344.052.355.060.185.878.655.360.165.038.153.951.2
    Canada1,049.31,062.01,058.7796.3868.0922.41,019.71,156.4965.8818.31,019.7886.4705.81,511.4338.3
    Denmark1,994.91,909.42,011.51,370.11,554.71,695.11,772.72,333.32,060.11,448.81,772.71,752.81,245.82,776.6556.5
    Finland81.1113.191.684.094.492.297.4267.5171.8100.397.4126.078.8383.178.8
    France96.095.398.069.281.282.493.2152.0123.181.393.295.363.4178.663.4
    Germany72.573.075.446.960.461.574.6124.0100.156.074.678.442.9163.641.4
    Greece67.167.068.538.250.754.963.6106.176.846.863.661.938.2197.238.2
    Hong Kong SAR6,433.86,747.86,349.04,501.24,838.96,011.56,341.37,690.16,058.04,808.46,341.35,553.64,305.410,165.31,995.5
    Ireland74.971.076.456.860.762.065.992.193.156.865.967.151.9107.351.9
    Italy81.979.883.162.672.271.378.1119.991.269.678.178.458.7132.158.7
    Japan686.7709.2714.6480.4542.9613.4637.3808.2650.3524.3637.3628.7462.11,655.3462.1
    Netherlands66.567.469.253.460.361.968.4124.5100.466.068.480.947.4134.947.4
    New Zealand120.6112.8115.686.8101.4102.8107.683.994.290.0107.6101.486.6141.056.7
    Norway1,461.11,407.31,475.8804.4994.11,041.21,240.91,458.01,278.4898.31,240.91,116.3762.21,599.1455.9
    Portugal70.074.172.751.355.959.666.197.979.557.066.164.648.1123.148.1
    Singapore1,066.11,048.31,041.3725.6831.9932.01,005.11,173.4936.8764.91,005.1922.1687.31,624.2508.2
    Spain91.092.092.867.879.377.289.6107.799.069.989.681.961.1133.727.4
    Sweden5,243.95,238.65,385.23,271.73,827.34,136.54,675.27,735.06,178.83,517.44,675.24,173.82,914.912,250.4787.2
    Switzerland726.0734.4735.8534.3626.6656.3714.31,017.0813.4603.2714.3716.9481.41,032.8158.1
    United Kingdom1,331.21,321.91,349.41,082.41,215.41,236.11,348.71,841.41,586.21,179.21,348.71,336.7986.41,974.2585.4
    United States1,031.21,055.91,066.9796.1916.1935.61,045.41,249.91,084.5824.61,045.4950.4726.51,493.0273.7
    Period on Period Percent Change
    Developed Markets
    Australia-0.43.83.0-4.03.74.24.53.77.9-12.58.5
    Austria2.719.66.81.19.52.912.8-7.6-2.4-3.028.5
    Belgium-0.25.84.3-20.418.95.39.2-13.1-8.3-29.78.7
    Canada-0.94.1-0.3-2.79.06.310.68.1-16.5-15.324.6
    Denmark-0.87.75.3-5.413.59.04.69.9-11.7-29.722.4
    Finland-11.516.2-19.1-16.212.4-2.25.6-8.9-35.8-41.6-2.9
    France-2.12.32.9-54.917.31.513.11.4-19.0-34.014.6
    Germany-3.9-2.23.4-16.228.72.021.2-10.8-19.3-44.033.2
    Greece-2.05.42.2-18.432.88.315.7-38.6-27.6-39.135.8
    Hong Kong SAR1.36.4-5.9-6.47.524.25.5-16.7-21.2-20.631.9
    Ireland-2.07.77.5-0.17.02.16.3-8.51.1-39.016.0
    Italy-1.42.34.0-10.015.3-1.29.43.9-24.0-23.612.2
    Japan-3.911.30.8-8.413.013.03.9-20.3-19.5-19.421.6
    Netherlands-4.0-1.52.8-19.112.92.610.61.0-19.4-34.33.6
    New Zealand4.44.82.5-1.414.21.44.7-24.912.2-4.419.6
    Norway-1.013.44.9-10.523.64.719.27.1-12.3-29.738.1
    Portugal-3.612.1-1.9-10.19.16.610.8-6.2-18.8-28.315.9
    Singapore2.64.3-0.7-5.114.612.07.8-25.7-20.2-18.431.4
    Spain-1.92.60.8-2.916.8-2.516.1-11.2-8.0-29.528.3
    Sweden-2.612.12.8-7.017.08.113.0-13.8-20.1-43.132.9
    Switzerland-1.32.80.2-11.417.34.78.86.2-20.0-25.818.4
    United Kingdom-1.3-2.02.1-8.212.31.79.1-6.7-13.9-25.714.4
    United States-3.51.01.2-3.515.12.111.7-13.6-13.2-24.026.8

    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)
    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    Emerging Markets
    Latin America
    Argentina2.982.862.962.972.812.922.931.001.003.362.932.813.000.983.86
    Brazil3.042.903.093.352.842.902.891.952.313.542.892.783.210.003.95
    Chile641.80612.40636.00733.25700.90660.95592.75573.85561.25720.25592.75558.00714.65295.18759.75
    Colombia2,611.902,679.552,693.202,953.002,817.002,900.802,780.002,236.002,277.502,867.002,780.002,611.902,906.90689.212,980.00
    Mexico11.4211.1311.4910.7710.4610.9911.239.629.1610.3711.2310.5811.672.6811.67
    Peru3.423.463.473.473.473.483.463.533.443.513.463.423.511.283.65
    Venezuela1,917.601,917.601,917.601,598.001,598.001,598.001,598.00699.51757.501,388.801,598.001,598.001,918.0045.001,921.80
    Asia
    China8.288.288.268.288.288.288.288.288.288.288.288.288.285.968.92
    India46.4743.6046.0647.4746.4945.7645.6346.6848.2547.9845.6343.5446.4716.9249.05
    Indonesia9,1308,5649,4008,9028,2758,3958,4209,67510,4008,9508,4208,3179,4401,97716,650
    Korea1,170.101,147.271,155.451,254.451,193.051,150.101,192.101,265.001,313.501,185.701,192.101,140.301,203.18683.501,962.50
    Malaysia3.803.803.803.803.803.803.803.803.803.803.803.803.802.444.71
    Pakistan58.3557.3958.0858.0057.8557.9057.2557.6059.9058.2557.2557.0058.5021.1864.35
    Philippines55.9556.2056.1253.5353.4854.8855.5450.0051.6053.6055.5454.5756.4623.1056.46
    Taiwan Province of China34.1433.0233.7834.7534.6433.7433.9633.0834.9534.6433.9632.8034.5124.4835.19
    Thailand41.3139.2940.9342.8442.0040.0339.6243.3844.2143.1139.6238.8442.0723.1555.50
    Europe, Middle East, & Africa
    Czech Republic26.3626.6726.1729.3727.5127.3625.7137.2835.6030.0725.7125.0529.9825.0542.17
    Egypt6.216.206.195.766.086.146.173.394.584.626.176.126.243.296.24
    Hungary206.52201.68205.61227.19231.27218.30208.70282.34274.81224.48208.70200.42238.2090.20317.56
    Israel4.524.534.504.704.324.444.394.044.404.744.394.364.631.965.01
    Jordan0.710.710.710.710.710.710.710.710.710.710.710.710.710.640.72
    Morocco10.609.188.859.859.459.338.8010.5611.5910.188.809.6210.857.7511.28
    Poland3.643.863.694.103.903.953.734.133.963.833.733.564.051.724.71
    Russia29.1128.5229.0731.3930.3730.5929.2428.1630.5131.9629.2428.4430.730.9831.96
    South Africa6.276.296.147.877.476.936.687.5811.968.576.685.937.602.5012.45
    Turkey1,466.0001,314.5001,484.0001,714.0001,418.5001,391.5001,406.500668.5001,450.1001,655.1001,406.5001,309.3001,558.0005,0361,769.000
    Developed Markets
    Australia20.700.770.700.600.670.680.750.560.510.560.750.800.640.840.48
    Canada1.331.311.331.471.351.351.301.501.591.571.301.271.411.121.61
    Euro21.231.231.221.091.151.171.260.940.891.051.261.281.081.280.83
    Hong Kong SAR7.807.797.807.807.807.747.767.807.807.807.767.717.807.707.82
    Japan111.35104.22108.77118.09119.80111.49107.22114.41131.66113.79107.22103.68120.3280.63159.90
    New Zealand20.640.670.640.560.590.600.660.440.420.520.660.710.570.720.39
    Norway7.026.846.937.277.207.046.678.808.966.946.676.637.685.519.58
    Singapore1.721.671.721.761.761.731.701.731.851.731.701.671.761.391.91
    Sweden7.687.547.518.457.997.757.199.4210.488.697.197.118.545.0911.03
    Switzerland1.281.271.251.351.351.321.241.611.661.381.241.221.421.121.82
    United Kingdom21.821.851.821.581.651.661.791.491.451.611.791.901.572.011.37
    Source: Bloomberg L.P.

    High value indicates value of greatest appreciation against the U.S. dollar; low value indicates value of greatest depreciation against the U.S. dollar. “All-Time” refers to the period since 1990 or initiation of the currency.

    U.S. dollars per unit.

    Period on Period Percent Change
    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    Emerging Markets
    Latin America
    Argentina-0.72.6-3.413.05.7-3.5-0.50.2-0.2-70.214.7
    Brazil1.6-0.1-6.15.617.9-1.90.3-7.7-15.6-34.722.4
    Chile-0.9-3.2-3.7-1.84.66.011.5-7.8-13.2-8.221.5
    Colombia3.13.7-0.5-3.15.0-2.94.3-16.3-1.8-20.63.1
    Mexico0.60.9-3.1-3.73.0-4.8-2.2-1.25.1-11.7-7.6
    Peru1.50.1-0.31.20.2-0.40.6-0.52.4-2.01.5
    Venezuela0.0-16.70.0-13.10.00.00.0-7.3-7.7-45.5-13.1
    Asia
    China0.00.00.00.00.00.00.00.00.00.00.0
    India-0.94.6-5.31.12.11.60.3-6.7-3.30.65.2
    Indonesia3.0-1.7-6.90.57.6-1.4-0.3-26.6-7.016.26.3
    Korea-1.33.9-0.7-5.55.13.7-3.5-9.9-3.710.8-0.5
    Malaysia0.00.00.00.00.00.00.00.00.00.00.0
    Pakistan-0.5-0.2-1.20.40.3-0.11.1-10.1-3.82.81.7
    Philippines0.3-1.20.10.10.1-2.5-1.2-19.5-3.1-3.7-3.5
    Taiwan Province of China-1.12.8-2.2-0.30.32.7-0.7-5.1-5.30.92.0
    Thailand-0.90.8-4.00.62.04.91.0-13.6-1.92.68.8
    Europe, Middle East, & Africa
    Czech Republic-0.7-3.61.92.46.30.56.4-3.94.718.416.9
    Egypt-0.3-0.50.1-19.8-5.1-1.1-0.4-11.5-15.1-0.9-25.1
    Hungary-0.43.5-1.9-1.2-1.85.94.6-10.62.722.47.6
    Israel-0.4-3.00.61.08.7-2.71.12.7-8.1-7.38.0
    Jordan0.0-0.10.10.00.10.00.0-0.30.2-0.10.1
    Morocco-16.5-4.23.83.34.21.36.1-4.6-8.913.915.7
    Poland1.4-3.34.7-6.65.0-1.15.80.44.23.52.6
    Russia-0.12.6-1.91.83.4-0.74.6-2.2-7.7-4.59.3
    South Africa-2.16.22.59.05.37.83.7-18.8-36.639.628.2
    Turkey1.27.0-11.4-3.420.81.9-1.1-18.6-53.9-12.417.7
    Developed Markets
    Australia20.52.0-8.87.611.41.010.6-14.9-8.810.233.9
    Canada0.1-0.9-1.37.18.9-0.44.2-3.5-5.91.321.2
    Denmark-1.5-2.2-0.84.15.41.37.7-6.7-5.117.919.8
    Euro21.1-2.2-0.94.05.51.38.1-6.3-5.618.020.0
    Hong Kong SAR0.0-0.4-0.10.00.00.7-0.3-0.30.00.00.4
    Japan-2.32.9-4.20.6-1.47.54.0-10.4-13.110.810.8
    New Zealand20.12.0-4.85.85.91.310.2-14.9-6.125.925.0
    Norway-1.3-2.6-1.2-4.61.02.35.7-8.9-1.829.24.1
    Singapore-1.21.5-2.5-1.70.21.91.7-4.0-6.06.42.1
    Sweden-2.1-4.60.32.85.83.07.9-9.5-10.220.620.9
    Switzerland-2.6-2.11.42.40.02.46.5-1.3-3.020.011.7
    United Kingdom20.03.4-1.4-1.74.50.47.5-7.7-2.610.710.9
    Source: Bloomberg L.P.

    High value indicates value of greatest appreciation against the U.S. dollar; low value indicates value of greatest depreciation against the U.S. dollar. “All-Time” refers to the period since 1990 or initiation of the currency.

    U.S. dollars per unit.

    Table 12.Emerging Market Bond Index: EMBI Global Total Returns Index
    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    Composite28529227624026427028319619922528329325129363
    Latin America
    Argentina72747060796967183615767776519447
    Brazil38038736427832334439022223823039040730440768
    Chile16616816415316116216211612915016216815316898
    Colombia20721619917619719520111514916920121616421670
    Dominican Republic96978512011011699102117991216312383
    Ecuador47352343730235337446417724123046452632552661
    El Salvador113119111105104107110981101209912095
    Mexico28929928226428028228419221925428430126130158
    Panama46247544941443844145230035339545247641547656
    Peru42044040837738642043124430734143144937644952
    Uruguay104106946089919710562971078010738
    Venezuela41039839026431934639322423628139341032241059
    Asia
    China24224924023524424324117920323024125023225098
    Malaysia19520019117919119219413315017519420118120164
    Philippines27126526223325826126115720123026127124227181
    Thailand18518818417618218518413815317418418917718975
    Europe, Middle East, & Africa
    Bulgaria60059459254355955957837246852557860254260280
    Côte d’lvoire5765565870625842544356735410029
    Croatia17617417617017117317414516216917417617117671
    Egypt14514514212813613914010312214014613514687
    Hungary14314414213914214214211112213714214414014497
    Lebanon18618418516017017117712213014817718617118699
    Morocco26626426524325225626219922223726226625226673
    Nigeria61161859544651157158626736437658662248962266
    Pakistan1011601001601601601601221601601609616091
    Poland29730629228430229329022124528029030827930871
    Russia42044641738342341942616425634842644738844726
    South Africa30231229828529429629719022027129731328031399
    Tunisia12913412711612612612711212713511813598
    Turkey27429026119222324827914417621327929122629191
    Ukraine284295281261268277289127199241289295261295100
    Latin25325924420622923625220217718925226121726162
    Non-Latin34435533730232933434218624029134235531435572
    Source: J.P. Morgan Chase & Co.
    Period on Period Percent Change
    2004 End of Period2003 End of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q1Q2Q3Q42000200120022003
    Composite3.03.4-5.55.610.12.34.714.41.413.125.7
    Latin America
    Argentina2.99.24.95.232.1-11.9-2.67.8-66.9-6.419.1
    Brazil4.4-0.9-5.820.816.46.413.513.07.3-3.669.8
    Chile1.23.5-2.62.25.00.60.312.211.715.88.3
    Colombia3.77.1-7.64.311.9-1.03.33.029.513.319.4
    Dominican Republic12.6-2.0-11.93.0-8.34.9-14.513.9-15.3
    Ecuador8.212.9-16.431.216.95.924.153.936.1-4.7101.5
    El Salvador1.67.9-6.36.3-0.43.02.711.9
    Mexico2.45.3-5.63.66.20.60.717.514.316.111.6
    Panama2.75.2-5.54.95.80.52.68.317.611.914.4
    Peru2.72.0-7.110.72.38.82.70.226.210.826.6
    Uruguay10.410.2-11.9-2.848.02.25.9-40.655.6
    Venezuela5.01.4-2.1-6.020.78.613.516.05.618.939.9
    Asia
    China1.03.3-3.62.13.8-0.5-1.012.113.313.64.5
    Malaysia1.73.2-4.51.87.20.50.911.612.916.910.7
    Philippines3.31.4-0.91.110.81.30.1-2.927.614.613.4
    Thailand0.52.2-2.21.33.61.4-0.414.311.313.55.9
    Europe, Middle East, & Africa
    Bulgaria1.42.6-0.33.43.00.03.45.125.712.210.2
    Côte d’lvoire1.712.9-14.334.821.0-11.3-6.8-20.230.5-20.734.8
    Croatia0.00.31.01.00.60.80.513.711.54.02.9
    Egypt1.73.8-2.24.36.22.41.018.514.4
    Hungary0.41.4-1.51.71.80.00.29.810.412.33.7
    Lebanon0.73.80.88.06.30.73.48.96.214.119.5
    Morocco0.30.70.42.24.01.42.25.511.17.210.2
    Nigeria2.55.4-3.618.414.611.72.75.336.33.355.8
    Pakistan1.60.0-37.7-0.20.00.00.031.3-0.2
    Poland1.75.4-4.51.76.1-2.9-0.915.910.614.23.7
    Russia0.84.7-6.510.110.4-1.01.754.955.835.922.4
    South Africa1.34.9-4.45.13.30.70.28.516.222.99.6
    Tunisia1.05.1-4.73.58.6-0.31.113.3
    Turkey5.14.2-10.1-9.916.011.612.21.122.521.130.8
    Ukraine1.22.2-5.03.12.93.44.257.121.019.8
    Latin3.73.1-5.99.011.22.96.512.5-12.46.833.0
    Non-Latin2.03.8-5.04.08.71.52.518228.821.017.7
    Source: J.P. Morgan Chase & Co.
    Table 13.Emerging Market Bond Index: EMBI Global Yield Spreads(In basis points)
    2003 End of PeriodEnd of Period12-Month High12-Month LowAll Time High1All Time Low1
    7/30/2004Q1Q2Q3Q42000200120022003
    Composite4506265154864037357287254035493711,631215
    Latin America
    Argentina4,9096,0964,4855,3555,4857705,3636,3425,4856,2014,4017,222381
    Brazil5861,0507986924597488641,4604598914062,451406
    Chile8415612910290220175176901347926079
    Colombia4295954474794277555086334275993521,076261
    Dominican Republic1,5255277897051,1414464991,1411,7505081,750304
    Ecuador944t.3721,1731,1217991,4151,2331,8017991,2806764,764630
    El Salvador289348371315284411284362217434217
    Mexico1982892392162013913063292012671651,149165
    Panama344399361359324501404446324433285769277
    Peru4114774913553256875216093255522731,061273
    Uruguay5951,3447206916362841,2286368115331,932251
    Venezuela6011,4061,0018325869581,1301,1315868865332,658409
    Asia
    China6768524458160993458803936439
    Malaysia124200143124100237207212100155941,14194
    Philippines423536443414415644466522415507377993300
    Thailand78120945467173132128671104995145
    Europe, Middle East, & Africa
    Bulgaria1212532292351777724332911772511211,679121
    Côte d’lvoire3,3252,7032,4742,6653,0132,4432,4183,1953,0133,3332,5373,333582
    Croatia117118113115122330187132122151991,01499
    Egypt992872161581313603251311697964679
    Hungary252033372813693522857-29196-29
    Lebanon3585924855044213386457764215052971,082111
    Morocco1373722442241605845183901602311281,606128
    Nigeria5271,2929636434991,8071,1031,9464999774092,937409
    Pakistan2772892892892891,1152712893482712,225271
    Poland6117668737624119518576933741017
    Russia2983652842852571,1726694782573602117,063211
    South Africa144187190162152418319250152209127757127
    Tunisia1302541831711462731462009139491
    Turkey3779707515383098037026963096462861,196286
    Ukraine3354043703632581,9539406712584382312,314231
    Latin5598106626315187028889815187144721,532401
    Non-Latin2944053262952487915234442483572331,812233
    Source: J.P. Morgan Chase & Co.
    Period on Period Percent Change12-Month High12-Month LowAll Time High1All Time Low1
    2004 End of PeriodEnd of Period
    7/30/2004Q1Q2Q3Q42000200120022003
    Composite47-99-111-29-83-16-7-3-322
    Latin America
    Argentina-576-246-1,6118701302374,593979-857
    Brazil127-410-252-106-233110116596-1,001
    Chile-6-20-27-27-1281-451-36
    Colombia2-38-14832-52339-247125-206
    Dominican Republic38428282-8443653642
    Ecuador145-429-194-57-322-1,938-182568-1,002
    El Salvador5-6323-56-31-127
    Mexico-3-40-50-23-1530-8523-128
    Panama20-47-36-2-3591-9742-122
    Peru85-13214-136-30244-16688-284
    Uruguay-41116-624-29-55944-592
    Venezuela15275-405-169-246901721-545
    Asia
    China9-16-16-81435-61-15-26
    Malaysia24-12-57-19-2465-305-112
    Philippines814-93-291334-17856-107
    Thailand11-8-26-40139-41-4-61
    Europe, Middle East, & Africa
    Bulgaria-56-38-246-58146-339-142-114
    Côte d’lvoire312-492-2291913481,051-25777-182
    Croatia-5-14-527-77-143-55-10
    Egypt-32-38-71-58-27-35-194
    Hungary-3-32134-919-43-41-24
    Lebanon-63-184-10719-83119307131-355
    Morocco-23-18-128-20-64204-66-128-230
    Nigeria28-654-329-320-144770-704843-1,447
    Pakistan-1218000-84418
    Poland-15-9-1085329-10-109
    Russia41-113-811-28-1,260-503-191-221
    South Africa-8-633-28-10141-99-69-98
    Tunisia-16-19-71-12-25-127
    Turkey68274-219-213-229360-101-6-387
    Ukraine77-267-34-7-105-1,013-269-413
    Latin41-171-148-31-11310418693-463
    Non-Latin46-39-79-31-47-222-268-79-196
    Source: J.P. Morgan Chase & Co.
    Table 14.Total Emerging Market Financing(In millions of U.S. dollars)
    20032004
    19992000200120022003Q3Q4Q1Q2
    Total163,569.6216,402.7162,137.7147,395.6206,900.054,557.366,585.069,284.855,099.3
    Africa4,707.29,382.86,992.37,019.012,073.84,187.21,032.72,606.32,062.3
    Algeria50.0150.040.0
    Angola455.0350.01,522.01,205.6550.0
    Botswana22.5
    Cameroon53.8100.0
    Chad400.0
    Côte d’lvoire179.015.0
    Ghana30.0320.0300.0420.0650.0650.0
    Kenya7.580.2134.0
    Malawi
    Mali150.4287.6287.6
    Mauritius160.0
    Morocco322.256.4136.147.7
    Mozambique200.035.5222.4
    Namibia35.035.0
    Niger27.0
    Nigeria90.0100.0960.0488.048.030.0
    Senegal40.0
    Seychelles50.0150.080.0
    South Africa3,423.48,698.84,646.74,058.17,764.92,325.0523.21,179.52,027.6
    Tanzania135.0
    Tunisia352.694.3533.0740.1485.27.2108.9544.530.0
    Zambia30.030.0
    Zimbabwe150.0
    Asia55,958.685,861.067,483.467,201.396,714.526,850.535,737.434,689.026,857.2
    Brunei129.0
    China3,461.823,063.45,567.38,891.616,530.93,729.57,520.17,810.56,421.9
    Hong Kong SAR11,488.321,046.418,307.312,602.111,407.32,680.65,783.02,393.92,703.5
    India2,376.22,224.22,382.21,380.83,954.51,272.11,858.14,335.51,809.4
    Indonesia1,465.31,283.1964.9974.05,486.8823.71,048.92,158.095.1
    Korea13,542.314,230.417,021.014,693.517,921.65,019.94,174.65,822.35,179.0
    Lao P.D.R.71.4
    Malaysia5,177.24,506.44,432.45,597.35,497.7535.52,450.5912.52,114.5
    Marshall Islands
    Pakistan182.5289.1185.57.0178.5500.0
    Papua New Guinea232.4153.7153.7
    Philippines7,181.75,021.93,658.85,458.15,122.21,285.52,063.72,520.01,232.5
    Singapore4,338.76,079.710,383.63,810.07,470.4925.93,275.81,315.41,438.8
    Sri Lanka
    Taiwan Province of China4,019.96,703.53,794.010,959.320,122.99,507.16,269.46,138.54,752.5
    Thailand2,551.71,572.5684.41,927.02,623.9957.7875.0982.41,075.0
    Vietnam100.020.0383.551.06.0
    Europe26,191.537,021.722,787.729,566.947,309.312,295.913,447.114,099.914,433.2
    Azerbaijan77.216.0997.0
    Belarus24.024.0
    Bulgaria53.98.9242.31,260.8702.46.2696.2540.5
    Croatia1,504.91,498.71,766.01,425.42,022.4178.1528.1372.7724.8
    Cyprus288.586.3633.0547.9648.2226.0422.2
    Czech Republic540.3127.1564.6453.44,438.81,605.01,331.116.12,395.6
    Estonia289.2412.7202.1292.6457.361.535.2
    Georgia6.06.0
    Gibraltar65.080.0
    Hungary3,471.21,308.81,364.71,040.23,634.31,431.2270.51,833.41,916.6
    Kazakstan417.0429.6573.5743.51,475.0670.0725.0202.0219.0
    Kyrgyz Republic95.0
    Latvia288.923.0212.174.670.770.7493.584.3
    Lithuania959.7683.8247.3374.3431.7754.2
    Macedonia
    Malta57.085.0114.7114.7
    Moldova40.0
    Poland3,780.75,252.94,836.65,913.27,633.51,448.32,455.73,524.0529.5
    Romania176.0594.41,347.21,442.21,738.877.2448.0244.791.0
    Russia166.83,950.73,200.18,496.011,788.82,947.33,857.11,756.95,032.0
    Slovak Republic994.71,466.7219.9143.1940.6286.91,235.3
    Slovenia687.7672.7827.2309.3394.861.511.876.2309.4
    Turkey11,900.020,385.46,405.16,376.09,349.53,018.72,217.03,128.61,320.0
    Ukraine290.715.0514.01,400.0410.0130.0700.0
    Uzbekistan142.040.030.046.037.8
    Middle East15,387.414,999.711,820.310,685.48,281.72,207.12,601.85,418.23,611.6
    Bahrain361.11,391.0207.0665.01,750.0
    Egypt1,533.7919.42,545.0670.0155.0155.0200.0
    Iran, I.R. of986.3
    Israel3,711.02,908.51,602.6344.4750.0758.11,264.7
    Jordan60.080.9
    Kuwait147.5250.0770.0750.0365.0365.0300.0
    Lebanon1,421.41,752.43,300.0990.0160.0160.01,268.0
    Libya50.0
    Oman356.8685.02,332.0818.3818.398.6360.0
    Qatar2,000.01,980.0913.01,536.7880.8653.097.91,125.0719.0
    Saudi Arabia4,374.82,200.9275.0280.0569.5169.5718.0
    United Arab Emirates781.02,045.0520.7370.02,133.21,219.6465.62,066.0
    Latin America61,324.969,117.653,854.032,923.042,520.69,016.613,766.012,271.48,134.9
    Argentina17,844.416,648.53,423.9824.2130.0100.0250.0100.0
    Bolivia20.090.0
    Brazil12,951.923,231.219,532.910,925.611,899.73,744.83,633.03,834.52,169.6
    Chile8,031.75,782.53,935.32,959.64,631.01,310.01,452.01,300.0469.2
    Colombia3,555.83,093.24,895.02,096.01,911.3515.0646.3500.0
    Costa Rica300.0250.0250.0250.0490.040.0310.0
    Dominican Republic74.0531.1258.0650.446.031.0
    Ecuador73.0910.010.0
    El Salvador316.5160.0488.51,251.5381.032.5
    Grenada100.0
    Guadeloupe17.4
    Guatemala222.0505.0325.044.0300.6300.059.3
    Jamaica421.0726.5345.049.61.3247.9125.0
    Mexico14,099.515,313.413,823.510,040.616,964.3800.55,846.24,401.73,771.1
    Nicaragua22.0
    Paraguay55.070.0
    Peru1,618.4465.4137.51,993.51,375.0125.0500.090.0500.0
    St. Lucia20.020.0
    Trinidad & Tobago230.0301.070.0303.046.0100.0
    Uruguay465.0602.11,147.4400.0
    Venezuela1,561.72,263.33,417.51,015.03,672.52,200.01,470.01,121.01,000.0
    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)
    20032004
    19992000200120022003Q3Q4Q1Q2
    Developing Countries82,359.480,475.489,036.961,647.497,388.224,601.424,732.538,372.526,859.7
    Africa2,345.51,485.82,109.62,161.15,511.92,000.01,180.71,100.0
    Mauritius160.0
    Morocco151.5464.9
    South Africa1,804.71,485.81,647.71,511.14,690.02,000.0636.21,100.0
    Tunisia229.3462.0650.0357.0544.5
    Asia23,424.724,501.435,869.222,532.734,389.39,834.911,768.513,729.99,375.0
    China1,060.01,770.72,341.9602.82,034.2318.31,665.438.8
    Hong Kong SAR7,124.87,058.910,458.61,951.61,236.2583.0468.7296.9140.0
    India100.0100.099.3153.0450.0100.0350.0888.1575.0
    Indonesia125.0375.0609.0192.41,300.025.3
    Korea4,905.87,653.07,756.36,705.511,531.33,305.82,089.05,129.93,811.7
    Malaysia2,062.41,419.72,150.01,880.0962.5962.5325.0550.0
    Pakistan500.0
    Philippines4,751.22,467.31,842.44,773.83,799.61,055.01,520.02,150.0650.0
    Singapore2,147.12,333.88,664.7562.14,336.8652.12,278.8302.3500.0
    Province of China475.01,698.02,152.45,480.89,129.73,627.82,434.12,799.02,123.0
    Thailand798.4278.648.0300.01,000.0
    Europe13,872.814,202.511,558.614,997.024,411.45,201.33,389.110,358.37,728.7
    Bulgaria53.9223.41,247.8
    Croatia601.2858.0934.0847.5983.6372.7724.8
    Cyprus288.5480.5479.8648.2226.0422.2
    Czech Republic421.750.7428.43,168.41,546.2150.02,011.4
    Estonia84.9335.765.5292.6323.335.2
    Hungary2,410.5540.81,247.870.52,211.41,130.11,239.51,350.4
    Kazakstan300.0350.0250.0209.0100.0100.0100.0100.0
    Latvia236.7180.8493.536.0
    Lithuania531.5376.2222.4355.6431.7754.2
    Poland1,652.61,553.52,773.72,679.94,301.2549.01,000.03,080.2422.2
    Romania259.5908.61,062.2813.6
    Russia75.01,352.73,391.54,005.0150.01,330.7850.01,100.0
    Slovak Republic800.2978.3219.9143.1861.3286.91,198.8
    Slovenia439.1384.7490.030.2
    Turkey5,761.28,490.82,158.73,259.85,253.81,250.02,768.2750.0
    Ukraine290.7499.01,310.0350.0100.0700.0
    Middle East4,409.84,670.65,920.73,706.61,860.0160.0200.02,710.02,518.0
    Bahrain209.1188.5325.0750.0
    Egypt100.01,500.0
    Iran, I.R. of986.3
    Israel1,679.21,329.71,120.7344.4750.0645.01,000.0
    Jordan80.9
    Kuwait750.0200.0200.0
    Lebanon1,421.41,752.43,300.0990.0160.0160.01,268.0
    Oman250.0
    Qatar1,000.01,400.0665.0
    United Arab Emirates230.01,400.0
    Latin America38,306.735,615.233,578.818,250.031,215.57,405.39,375.010,393.66,138.0
    Argentina14,182.813,024.81,500.5100.0100.0100.0
    Brazil8,585.811,382.112,238.86,375.510,709.93,190.33,515.02,901.01,264.7
    Chile1,763.8679.71,536.01,728.92,900.0900.0850.01,150.0
    Colombia1,675.61,547.24,263.31,000.01,765.0515.0500.0500.0
    Costa Rica300.0250.0250.0250.0490.040.0310.0
    Dominican Republic500.0600.0
    El Salvador150.050.0353.51,251.5348.5
    Grenada100.0
    Guatemala325.0300.0300.050.0
    Jamaica421.0690.7300.0247.9125.0
    Mexico9,854.07,078.49,231.74,914.19,082.1300.02,400.04,130.73,148.3
    Peru1,930.01,250.0500.0500.0
    Trinidad & Tobago230.0250.0100.0
    Uruguay350.0442.61,106.1400.0
    Venezuela1,214.7489.41,583.23,670.02,200.01,470.61,000.01,000.0
    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)
    20032004
    19992000200120022003Q3Q4Q1Q2
    Developing Countries23,187.441,772.811,245.916,359.428,671.07,092.718,373.713,061.310,044.2
    Africa658.7103.3150.9340.5977.4223.2223.3927.6
    Morocco56.46.8
    South Africa658.746.9144.1340.5977.4223.2223.3927.6
    Asia18,271.831,567.79,591.512,411.424,612.96,906.015,478.112,007.97,884.3
    China1,477.420,239.72,810.42,546.06,864.4339.85,677.96,387.55,284.4
    Hong Kong SAR3,370.03,088.6297.12,857.72,962.2493.62,382.6857.4553.9
    India874.4916.7467.2264.81,299.7330.4969.32,509.0
    Indonesia522.228.2347.2281.01,008.4131.3607.1338.019.8
    Korea6,590.6784.83,676.41,553.71,222.6465.1488.594.4937.3
    Macao29.5
    Malaysia15.4891.2618.2155.9454.6104.311.2
    Papua New Guinea232.4153.7153.7
    Philippines221.7194.611.3
    Singapore1,725.62,202.2625.8891.61,168.7123.3563.7493.4145.2
    Taiwan Province of China2,500.43,951.51,126.63,057.98,276.34,702.83,305.71,062.9932.5
    Thailand757.3132.0225.356.31,038.7163.7875.0161.0
    Europe1,411.63,339.3259.41,612.42,253.333.02,132.4693.5282.7
    Bulgaria442.0442.0
    Croatia22.3
    Czech Republic824.6824.6146.9
    Estonia190.3
    Hungary529.219.113.213.2349.7
    Latvia22.7
    Lithuania150.5
    Poland636.3358.9217.3604.938.0552.1107.4
    Russia55.8387.7237.11,301.0368.7300.5237.428.5
    Turkey2,423.871.4106.5
    Middle East2,084.01,618.136.8136.6264.7
    Egypt89.2319.4
    Israel1,994.81,298.786.8113.1264.7
    Oman23.6
    Latin America761.35,143.91,157.21,995.0627.4153.6540.0684.9
    Argentina349.6393.134.4
    Brazil161.43,102.51,122.91,148.5287.4153.6499.7
    Chile105.4
    Dominican Republic74.0
    Mexico162.01,574.3846.6540.0540.079.8
    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)
    20032004
    19992000200120022003Q3Q4Q1Q2
    Total58,022.394,154.561,854.969,388.980,840.822,863.223,478.717,850.918,195.3
    Africa1,703.07,793.74,731.84,517.45,584.62,187.2809.41,202.434.8
    Algeria50.0150.040.0
    Angola455.0350.01,522.01,205.0550.0
    Botswana22.5
    Cameroon53.8100.0
    Chad400.0
    Côte d’lvoire179.015.0
    Ghana30.0320.0300.0420.0650.0650.0
    Kenya7.580.2134.0
    Malawi4.8
    Mall150.4287.6287.6
    Morocco170.6129.39.8
    Mozambique200.035.5222.4
    Namibia35.035.0
    Niger27.0
    Nigeria90.0100.0960.0488.048.030.0
    Senegal40.0
    Seychelles50.0150.080.0
    South Africa960.07,166.12,855.02,206.52,097.5325.0300.0320.0
    Tanzania135.0
    Tunisia123.494.371.090.5128.27.2108.930.0
    Zambia30.030.0
    Zimbabwe150.0
    Asia14,262.029,812.022,022.732,257.337,712.310,109.78,490.89,151.39,597.9
    Brunei129.0
    China924.41,053.1415.15,742.87,632.43,070.9176.91,384.21,137.5
    Hong Kong SAR993.510,398.97,551.67,792.97,208.91,604.02,931.71,239.62,009.6
    India1,401.81,207.61,815.7963.12,204.8841.7533.8938.51,234.4
    Indonesia943.11,254.9492.6318.03,869.4500.0441.9520.050.0
    Korea2,046.05,792.65,588.26,434.35,167.71,249.01,597.0598.0430.0
    Lao P.D.R.71.4
    Malaysia3,114.83,086.72,267.02,826.13,917.1379.61,033.4483.21,553.3
    Marshall Islands34.7
    Pakistan182.5283.1185.57.0178.5
    Philippines2,208.92,360.01,816.4673.01,322.5230.5543.7370.0582.5
    Singapore466.01,543.71,093.22,356.31,964.8150.5433.3519.7793.6
    Sri Lanka23.0100.0105.0186.0100.036.035.0
    Taiwan Province at China1,044.51,054.0515.02,420.52,716.91,176.5529.72,276.71,697.0
    Thailand996.01,440.5180.51,822.71,235.2794.0821.375.0
    Vietnam100.020.0383.551.06.0
    Europe10,907.119,479.310,969.712,957.520,644.67,061.67,925.73,048.06,421.8
    Azerbaijan77.216.0997.0
    Belarus24.024.0
    Bulgaria8.918.91.0260.46.2254.2540.5
    Croatia903.6640.7809.3577.81,038.9178.1528.1
    Cyprus86.3152.568.1
    Czech Republic118.6127.1513.925.0445.958.7356.516.6237.4
    Estonia14.0136.6133.961.5
    Georgia6.06.0
    Gibraltar65.080.0
    Hungary531.6748.9116.9969.71,409.7308.2257.3244.3566.2
    Kazakstan117.079.6323.5534.51,375.0670.0625.0102.0119.0
    Kyrgyz Republic95.0
    Latvia52.223.031.351.970.770.748.3
    Lithuania428.2157.224.918.8
    Macedonia
    Malta57.085.0114.7114.7
    Moldova40.0
    Poland1,491.93,340.52,062.93,016.02,727.4866.3903.6443.8
    Romania176.0334.9438.6380.0925.277.2448.0244.791.0
    Russia111.03,488.11,610.33,803.57,415.12,797.32,226.6669.53,903.5
    Slovak Republic194.5488.379.336.5
    Slovenia248.6288.0337.2279.0394.861.511.876.2309.4
    Turkey6,138.89,470.94,246.43,044.84,095.71,768.72,217.0253.9570.0
    Ukraine15.015.090.060.030.0
    Uzbekistan142.040.030.046.037.8
    Middle East8,893.78,711.05,012.76,978.66,421.72,047.12,401.82,571.5829.0
    Bahrain152.01,202.5207.0340.01,000.0
    Egypt1,344.5600.01,045.0670.0155.0155.0200.0
    Iran. I.R. of692.0757.7887.01,680.1700.0700.0152.5
    Israel45.0280.0395.0
    Jordan60.0
    Kuwait147.5250.0770.0165.0165.0300.0
    Libya50.0
    Oman356.8685.02,332.0818.3818.375.0110.0
    Qatar1,000.0580.0913.01,536.7880.8658.097.9460.0719.0
    Saudi Arabia4,374.82,200.9275.0280.0569.5169.5718.0
    United Arab Emirates781.02,045.0520.7140.02,133.21,219.6465.6566.0
    Latin America22,257.028,358.519,118.012,677.910,477.71,457.73,851.11,877.81,312.0
    Argentina3,312.13,230.51,889.0824.230.0250.0
    Bolivia20.090.0
    Brazil4,204.78,753.16,171.33,401.7902.4400.9118.0929.5405.2
    Chile6,267.95,102.82,399.31,230.71,731.0410.0602.0150.0363.8
    Colombia1,880.21,546.0631.71,096.0146.3146.3
    Costa Rica150.0
    Dominican Republic31.1258.050.446.031.0
    Ecuador73.0910.010.0
    El Salvador166.5110.0135.032.532.5
    Guadeloupe17.4
    Guatemala222.0505.044.09.3
    Jamaica35.845.049.61.3
    Mexico4,083.66,660.74,591.84,280.07,342.2500.52,901.3271.0543.0
    Nicaragua22.0
    Paraguay55.070.0
    Peru1,530.0465.4137.563.0125.0125.090.0
    St. Lucia20.020.0
    Trinidad & Tobago51.070.0303.046.0
    Uruguay115.0159.541.3
    Venezuela347.01,773.91,834.31,015.02.5125.0
    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
    20042003
    Q2Q1Q3Q419992000200120022003
    Argentina1.060.981.231.083.294.625.163.421.08
    Brazil3.463.274.363.462.953.184.935.513.46
    Chile1.761.961.741.761.832.332.312.761.76
    China2.192.262.962.193.140.951.952.412.19
    Colombia3.923.064.483.926.7811.125.634.783.92
    Czech Republic6.857.357.366.851.360.952.282.366.85
    Egypt4.694.234.234.693.925.756.487.534.69
    Hang Kong SAP.2.822.843.202.822.312.583.253.852.82
    Hungary0.940.780.990.941.141.461.301.400.94
    India1.471.611.881.471.251.592.031.811.47
    Indonesia3.833.664.003.830.913.053.654.173.83
    Israel1.101.010.801.101.872.262.241.471.10
    Jordan2.362.252.652.364.244.543.513.772.36
    Korea1.821.882.141.820.812.051.541.381.62
    Malaysia2.381.922.492.381.151.701.872.042.38
    Mexico1.831.662.021.831.271.631.982.301.83
    Morocco4.183.794.324.182.493.593.974.844.18
    Pakistan8.636.208.788.634.005.1216.0110.958.63
    Peru1.751.702.311.752.863.383.162.371.75
    Philippines1.431.531.331.431.081.441.431.971.43
    Poland1.281.141.391.280.700.681.871.841.28
    Russia2.382.001.612.380.140.921.111.872.38
    Singapore2.031.982.342.030.861.401.602.272.03
    South Africa3.222.933.673.222.092.753.473.833.22
    Sri Lanka2.512.271.842.513.225.594.793.352.51
    Taiwan Province of China1.861.731.911.860.971.711.421.601.86
    Thailand1.692.432.571.690.702.132.022.481.69
    Turkey0.891.441.260.890.761.911.151.350.89
    Venezuela3.683.034.483.685.805.053.892.383.68
    Emerging Markets2.252.162.522.251.522.092.302.432.25
    EM Asia1.961.972.281.961.011.711.731.811.96
    EM Latin America2.612.433.032.612.282.693.373.642.61
    EM Europe & Middle East1.611.751.531.811.161.841.691.711.81
    ACWI Free1.992.032.161.991.271.461.722.251.99

    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
    20042003
    Q2Q1Q3Q4199819992000200120022003
    Argentina1.792.001.381.791.311.471.040.861.201.79
    Brazil1.811.791.371.810.521.241.181.111.241.81
    Chile1.551.331.501.551.161.691.491.391.151.55
    China2.162.131.632.160.630.692.751.881.302.16
    Colombia1.341.811.111.340.710.710.490.531.181.34
    Czech Republic1.061.300.951.060.730.801.000.810.841.06
    Egypt2.172.671.812.172.133.572.321.391.052.17
    Hong Kong SAR1.471.561.381.471.312.271.671.381.101.47
    Hungary1.972.281.941.973.053.352.332.031.911.97
    India3.793.532.883.792.003.552.712.132.153.79
    Indonesia2.262.422.112.261.392.11.032.722.232.26
    Israel2.462.752.332.461.482.533.042.221.742.46
    Jordan1.982.081.821.981.051.031.021.381.261.98
    Korea1.521.711.351.520.991.420.821.331.211.52
    Malaysia1.852.111.741.851.251.981.591.751.541.85
    Mexico2.202.492.042.201.722.311.911.991.772.20
    Morocco1.501.641.451.504.273.532.561.791.401.50
    Pakistan2.312.412.232.311.071.481.410.882.042.31
    Peru2.773.012.072.771.411.921.131.291.842.77
    Philippines1.401.361.331.401.481.641.271.110.851.40
    Poland1.721.921.681.721.472.122.101.331.371.72
    Russia1.331.641.341.330.672.410.901.271.221.33
    Singapore1.621.671.521.621.552.562.051.631.261.62
    South Africa1.951.961.701.951.522.752.691.811.721.95
    Sri Lanka1.521.572.021.521.151.000.600.831.221.52
    Taiwan Province of China2.102.252.112.102.213.461.871.981.532.10
    Thailand2.942.492.302.941.142.041.511.681.832.94
    Turkey2.022.061.492.022.559.212.723.801.762.02
    Venezuela1.411.781.141.410.570.630.670.480.871.41
    Emerging Markets1.902.011.671.901.212.121.641.591.451.90
    EM Asia1.952.061.711.951.402.091.531.681.411.95
    EM Latin America1.901.951.591.900.871.571.361.351.441.90
    EM Europe & Middle East1.671.951.591.671.883.412.151.701.421.67
    ACWI Free2.462.482.272.463.494.233.462.672.072.46

    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
    20042003
    Q2Q1Q3Q419992000200120022003
    Argentina18.2527.817.9613.7224.8220.6919.13-12.8613.72
    Brazil9.999.059.3710.3418.6412.838.4911.2310.34
    Chile22.2623.3734.4230.8146.4031.9618.0217.1630.81
    China17.0915.1613.0517.1114.9740.6014.0912.1417.11
    Colombia12.1211.808.578.9420.30-103.4464.919.558.94
    Czech Republic16.9122.3811.5112.49-42.0416.499.2110.4012.49
    Egypt13.2310.519.0710.9016.549.356.287.3310.90
    Hong Kong SAR21.8321.3717.0820.0030.817.6420.4714.9120.00
    Hungary13.2312.1411.0913.1118.5014.8219.3410.0613.11
    India17.6214.5215.9710.9622.8415.6113.8413.5618.96
    Indonesia11.0610.758.3110.37-48.7318.688.377.1410.37
    Israel32.5841.5552.9634.0525.5123.88228.84-46.6234.05
    Jordan22.4528.3920.1821.3813.51-107.1115.1012.3921.38
    Korea15.2612.5611.4613.9323.248.1215.2311.4413.93
    Malaysia18.9815.8015.3716.33-8.4120.6322.6213.2116.33
    Mexico17.3214.2914.9615.7014.6413.7814.2314.0715.70
    Morocco24.7922.8521.9422.4618.659.3010.779.8722.46
    Pakistan9.469.188.448.6817.608.394.538.078.68
    Peru30.5920.5214.2626.4518.4615.4414.0820.4226.45
    Philippines19.0917.7920.2520.18142.83-35.0643.7218.2120.18
    Poland25.1315.7528.6719.5022.3314.3018.32-261.1419.50
    Russia12.478.9213.9611.13-126.435.695.037.3311.13
    Singapore19.9315.5121.5421.3841.1818.9416.5321.0721.38
    South Africa13.7813.2210.9312.7518.7314.8711.3010.5012.75
    Sri Lanka11.9512.9914.8312.697.594.248.5314.3512.69
    Taiwan Province of China27.7616.7636.0125.7038.2614.0621.0873.1325.70
    Thailand13.2312.3812.4915.24-8.94-14.6116.6715.5215.24
    Turkey9.958.327.9811.0138.6011.7725.51101.3311.01
    Venezuela26.5519.3316.5624.4017.6821.7618.4313.4324.40
    Emerging Markets2.162.5513.8415.0327.1714.8513.9913.9515.03
    EM Asia1.972.3014.9716.7240.9815.4716.7314.8516.72
    EM Latin America2.432.9512.2113.1818.2814.9311.6713.8413.18
    EM Europe & Middle East1.752.2216.2814.6537.2514.0513.1016.2714.65
    ACWI Free2.032.0521.3621.9435.7025.4426.7623.1821.94

    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)
    20042003
    Q2Q1Q3Q419992000200120022003
    Asia Pacific (Ex-Japan)-423.41,068.2442.5962.9151.7-1,207.9-496.2-43.01,510.8
    Corporate High Yield-3,807.3-1,601.7310.53,739.2-510.1-6,162.35,938.38,082.420,261.9
    Corporate Investment Grade-1,560.33,095.31,721.6752.87,136.34,253.721,692.032,688.316,660.2
    Emerging Markets Debt-243.6325.2-175.7437.218.4-499.9-447.7449.7889.0
    Emerging Markets Equity-914.13,112.01,644.62,676.023.5-349.9-1,662.7-330.74,672.7
    European Equity-96.6374.2-1.9-722.9-1,664.9620.9-1,790.8-1,044.8-947.4
    Global Equity1,609.22,574.7-436.9719.84,673.212,626.7-3,005.5-5,152.1-1,995.4
    Growth-Aggressive4,081.06,022.14,654.55,286.715,247.546,610.317,882.85,611.611,464.9
    International & Global Debt221.22,159.0-96.11,498.9-1,581.6-3,272.2-1,602.2-823.03,225.0
    International Equity5,268.114,256.44,873.37,688.92,998.513,322.4-4,488.24,240.014,650.8
    Japanese Equity1,314.61,541.4755.7570.7731.0-830.6-269.8-82.01,863.3
    Latin American Equity Funds-53.0-39.761.7107.7-120.9-94.6-146.732.7185.7

    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 that 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)
    1998199920002001200220032004:Q1
    Latin America
    Argentina20.420.819.517.914.014.0
    Bolivia11.612.213.414.616.115.316.1
    Brazil15.615.514.315.316.718.9
    Chile12.513.513.312.714.014.115.0
    Colombia10.310.812.212.412.112.413.2
    Costa Rica14.417.516.715.115.816.5
    Dominican Republic13.312.512.111.812.011.412.3
    Ecuador11.214.713.113.511.812.212.2
    Honduras7.511.412.312.712.913.013.1
    Mexico14.416.213.814.715.514.214.5
    Paraguay117.217.216.217.920.120.8
    Peru11.212.012.913.412.513.314.2
    Uruguay1, 211.210.211.711.320.911.310.7
    Venezuela
    Emerging Europe
    Armenia29.827.825.031.730.533.835.6
    Bulgaria36.741.835.631.325.222.021.3
    Croatia12.720.621.318.515.615.7
    Czech Republic12.013.214.815.414.314.515.2
    Estonia17.016.113.214.415.314.514.0
    Hungary16.514.913.713.913.011.6
    Israel9.29.49.29.49.910.4
    Latvia17.016.414.314.213.112.6
    Lithuania23.817.416.315.714.813.2
    Macedonia25.928.736.734.328.1
    Malta14.316.015.916.0
    Poland11.713.212.915.113.813.8
    Russia11.518.119.020.319.119.118.7
    Slovak Republic6.612.612.519.821.321.621.0
    Slovenia15.314.013.511.911.911.5
    Turkey8.29.320.825.130.932.1
    Ukraine19.615.520.718.015.114.8
    Western Europe
    Austria13.513.013.313.713.314.414.0
    Belgium11.311.911.912.913.112.8
    Denmark10.711.111.312.112.612.8
    Finland11.511.911.610.511.718.9
    France12.711.912.112.312.0
    Germany11.411.511.712.012.712.9
    Greece10.216.213.612.510.610.7
    Iceland10.410.69.711.412.312.4
    Ireland11.610.810.710.612.313.9
    Italy11.310.610.110.411.211.2
    Luxembourg12.913.113.413.715.017.7
    Netherlands11.110.910.711.011.511.5
    Norway12.412.012.112.612.212.412.0
    Portugal11.110.89.29.59.810.0
    Spain12.912.612.412.912.512.6
    Sweden10.411.49.910.010.110.110.0
    Switzerland11.311.312.711.812.111.2
    United Kingdom313.214.013.013.212.212.5
    Asia
    Bangladesh7.37.46.76.77.5
    China12.813.512.311.2
    Hong Kong SAR18.518.717.816.515.815.4
    India11.611.211.111.411.912.6
    Indonesia-13.0-6.721.618.220.122.3
    Korea8.210.810.510.810.510.5
    Malaysia11.812.512.513.013.213.713.5
    Pakistan12.512.211.411.312.611.111.1
    Philippines417.717.516.214.715.516.3
    Singapore18.120.619.618.116.917.9
    Thailand10.912.411.913.913.714.012.7
    Middle East and North Africa
    Egypt
    Jordan21.721.219.417.416.715.9
    Kuwait22.523.722.222.019.718.4
    Lebanon18.915.016.918.019.422.3
    Morocco12.612.112.812.612.210.1
    Oman16.516.515.616.9
    Saudi Arabia21.221.221.020.318.719.0
    Tunisia11.711.613.310.610.6
    United Arab Emirates20.020.520.220.018.918.2
    Sub-Saharan Africa
    Ghana11.111.511.614.713.4
    Kenya17.517.117.417.218.1
    Mauritius11.913.312.313.013.1
    Nigeria12.719.017.516.1
    South Africa10.111.512.511.412.612.212.7
    Tanzania6.53.89.69.68.6
    Uganda11.0