This study explains why increased access to finance remains a top policy priority across the Mediterranean countries. Banks in the region are considered sound. They attract savings and are generally stable. Still, to provide a substantial contribution to growth, they could play a stronger role...

This study examines the opportunities for growth in the banking sector in the ENCA region and discusses the challenges involved in providing an enabling environment for the development of the private sector. The banking sector has a key role to play as faster growth and economic diversification...

The paper estimates i) the degree of currency undervaluation and its relationship with per capita income (convergence), as informed by the Harrod-Balassa-Samuelson (HBS) framework. ii) The role of the real effective exchange rate, both its level and its stability over time, for underpinning...

We propose the Volume Coefficient of Variation (VCV), the ratio of the standard deviation to the mean of trading volume, as a new and easily computable measure of information asymmetry in security markets. We use a simple microstructure model to demonstrate that VCV is strictly increasing in the...