Research suggests that if the majority of a country’s financial institutions are owned by the state, that country will experience slower financial development, less efficient financial systems, less private sector credit, and slower GDP growth. Yet more than 40 percent of the world’s population live in countries in which public sector institutions dominate the banking system. In this volume, noted experts discuss the challenges presented by state-owned financial institutions and offer cross-disciplinary solutions for policymakers and banking regulators. Included are case studies exploring varying methods of privatization, such as initial public offerings, employee stock ownership plans, and strategic investors.

The Future of State-Owned Financial Institutions is a product of the sixth annual Financial Markets and Development conference organized by the World Bank, the International Monetary Fund, and the Brookings Institution.