| Description and source | |
| Bank Market Structure: |
| Concentration | A measure of the degree of concentration in the banking industry, calculated as the fraction of assets held by the three largest commercial banks in each country, averaged over the period 1995-99. Source: Fitch IBCA's Bankscope Database |
| Regulatory restrictions: |
| Fraction of entry applications denied | A measure of the number of entry applications denied as a fraction of the number of applications from both domestic and foreign entities (ratio of survey questions 1.9.1 And 1.10.1 to 1.9 and 1.10) Source: Barth, Caprio, and Levine (2003, forthcoming in the JFI) |
| Fraction of domestic entry applications denied | A measure of the number of domestic entry applications denied as a fraction of the number of applications from domestic entities (ratio of survey questions 1.9.1 to 1.9) Source: Barth, Caprio, and Levine (2003, forthcoming in the JFI) |
| Fraction of foreign entry applications denied | A measure of the number of foreign entry applications denied as a fraction of the number of applications from foreign entities (ratio of survey questions 1.10.1 to 1.10) Source: Barth, Caprio, and Levine (2003, forthcoming in the JFI) |
| Activity restrictions | A measure of a bank's ability to engage in the businesses of underwriting, insurance, and real estate, and of the regulatory effectiveness of banks to own shares in non-financial firms (sum of survey questions 4.1 through 4.4) Source: Barth, Caprio, and Levine (2003, forthcoming in the JFI) |
| Banking freedom | An indicator of relative openness of banking and financial system, averaged over the period 1995-99: specifically whether the foreign banks and financial services firms are able to operate freely, how difficult it s to open domestic banks and other financial services firms, how heavily regulated the financial system is, the presence of state-owned banks, whether the government influences allocation of credit, and whether banks are free to provide customers with insurance and invest in securities (and vice-versa). The index ranges in value from 1 (very low) to 5 (very high), calculated as 6 minus the banking freedom index of the Heritage Foundation. Source: Heritage Foundation's Index of Economic Freedom |
| Ownership: |
| State ownership | A measure of the degree of government ownership of banks, calculated as the fraction of the banking system's assets that is in banks that are 50% or more government owned (survey question 3.7) Source: Barth, Caprio, and Levine (2003, forthcoming in the JFI) |
| Foreign ownership | A measure of the degree of government ownership of banks, calculated as the fraction of the banking system's assets that is in banks that are 50% or more foreign owned (survey question 3.8) Source: Barth, Caprio, and Levine (2003, forthcoming in the JFI) |
| Institutions: |
| Economic freedom | A composite of 10 institutional factors determining economic freedom, averaged over the 1995-99: trade policy, fiscal burden of government, government intervention in the economy, monetary policy, capital flows and foreign investment, banking and finance, wages and prices, property rights, regulation, and black market activity. The index ranges 1 to 5, with a high score signifying greater freedom (calculated 6 minus the economic freedom index of the Heritage Foundation). Source: Heritage Foundation's Index of Economic Freedom |
| KKZ index | A composite of six governance indicators (1998 data): voice and accountability, political stability, government effectiveness, regulatory quality, rule of law. And corruption. Higher values correspond to better governance. Source: Kaufman and Kraay (2000/1) |
| Financial sector development: |
| Private credit | A broad measure of financial intermediary development. Calculated as the value of credits by financial intermediaries to the private sector divided by GDP. Source: Beck, Demirguc-Kunt, and Levine (2000) |
| Total value traded | A measure of stock market development. Calculated as the value of stocks traded divided by GDP. Source: Beck, Demirguc-Kunt, and Levine (2000) |
| Economic development data: |
| GDP per capita | GDP per capita expressed in constant 1995 US dollars for period 1995-99. Source: World Development Indicators. |
| Economy size | GDP expressed in constant 1995 US dollars for period 1995-99. Source: World Development Indicators. |
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