Governing Finance: East Asia's Adoption of International Standards (Cornell Studies in Money)

127 Pages·2008·18.64 MB·English

by  Andrew Walter

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GoverningF inance
A VOI.UMIEN T HES ERIES
CorneSlltu diesin Money EasAts iaA'dso ptioofn
editbeyEd r iHce lleiannedr J onaKitrhsahnn er InternatSitoannadla rds
A liostfti itntlh esiseris ei assv aialwtaw bwcrl.rneec llprcrerneslsl..cedu.
Andrezv Walter
Cornell University Press
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Contents
CopyrigC h200t8 by CorneUlnli versity
Allr ighrtesse rvEexdc.e pfto rb rieqfu otatiionna s r eview,
thiboso ko,r p arttsh ereomufs,t n otbe reproducienad n y
formw ithopuetr missiinow nr itifnrgo mt hep ublishFeorr.
informatiaodnd,r eCsosr neUlnli versPirteysS sa,g Heo use,
512E asStta teS treeItt,h acNae,wY ork1 4850.
Firpsutb lish2e0d0 b8y C orneUlnli versPirteys s
Printiendt heU niteSdt atoefsA merica
LibraoryCf o grensCatalosgi ng-in-PuDbaltiac ation LisotfF igures vii
LisotfT ables ix
WalteArn,d rew.
Governinfign anc:e EasAts iaa'dso ptioofni nternational Acknowledgments Xl
standaIrAd nsd reWwa lter.
Abbreviations Xlll
p.c m.- (Cornesltlu diienms o ney)
Includbeisb liograprheifcearle nacnedis n dex.
ISBN9 78-0-48-406415-(0c lo:t ahlkp.a per) InrtoduicotnI:n etrnatioSntaaln dards
1.I nternatiofinnaaln ciraelp ortsitnagn dard2s.F. i nancial andF inancGioavle rnance 1
institutions-SoAustihae-aSsttsa utpee rvisi3o.Fn i.n ancial 1.Th eA siaCnr isainsdt heI netrnatioFnianla ncial
instits-u-tKioorne(aS outh)-Sstautpee rvisi4o.Cn o.r porate
StandarPdrjsoe ct 8
governance-SoutAhseiaas.t5 .C orporagtoev erance­
Kore(aS outh6). A ccounting-Sta..n..d..oa..surtdhseaAssti a. 2.A Theoroyf C omplianwcietI h nternatiSotnaanld ards 29
7.A ccounting-Stans-d-aKrodre(aS outhI). T itle.
3. Banking SupienIr nvdiosnieons ia 50
II.S eries.
4.C orporaGtoev ernanicnTe h ailand 78
HG187.A789W23040 8 5.B ankinSgu pervisaindoC no rporatGeo vernance
657.'8 3330128-dc22
inM alaysia 99
2007209235 6.B ankinSgu pevriisonC,o rpoartef 'JOevrnance,
andF inancDiiasloc slurien K orea 126
CornelUln iversPirtye ssst ritvoeu ss ee nvironmentally
7.P ractiacnadTl h eoretIimcpall ications 166
responssiubplpel iaenrdsm ateritaolt sh ef ulleexstte nt
possibilnte h ep ublishoifni gtb so oksS.u chm ateriianlcsl ude
vegetable-lboaws-eVdO,iC n kasn da cid-fpraepee rtsh at AppendiTxh:eK eyI netrnatioSntaaln daradnsdC odes 185
arer ecyclteodt,a clhllyo rine-ofrpr aeret,cl oym poseodf Notes 189
nonwoofdi beFrosr.f urthienrf ormatviiosnoi,ut rw ebsiatte
References 211
www.comellpress.cornell.edu.
Index 227
Clotphr inting 109 8 7 6 54 32 1
Figures
Figu1r.e1S .tr uctural conidn1i MtiFop nraolgirtaimess,
IndoneKsoirae,aa n,dT haila1n9d9:7 -2000 19
FigureF o2u.sr1t .a goefcs o mpliaanncdce o mpliafnaciel ure 32
Figu2r.e2E .ff ecotfcs r isoencs o mplia(nicnet ernational
standawridthshi gmho nitorainndpg r ivsaetcet or
compliacnocset s) 44
Figu2r.e3P .r o-complpiraenscsaeun rdde o mesctoimcp liance
cosftasv moorc kc ompliance outcomes 47
Figu2r.e4P .r ivsaetcet coorm pliacnocsaetn sdt hipradr ty
monitorcionsbgty ss tandard 48
Figu3r.e1 . IndboanneksCARsis:a na ndN PLs1,9 97-2005 65
Figu5r1.e.M alayCAsRsi aa:n d NP1L9s9,7 -2005 106
Figu6r1.e.K oredaonm esctoimcm ercbiaanlkA sv:e raCAgRes
andN PLso,ffi cieaslt imates, 1992-20051 31
Figure 6.2. Koreaonn e bqauni1kt9sy9: 3 -R2e0t0u4r n 138
Figu6r.e3K .o rebaann kPsr:o visoinos nubss tanadnadbr edl ow
loan(sS BLass%) oft otSaBlL s1,9 99-2002 139
Figu6r.e4K .o rebaann kLsa:r geex posure2 0r0a0t-i2o0,0 5 141
Tables
Tabl1e. 1S.D DSs ubscrippotsitoinan,ng dc, o mpliadnactee s,
selecctoeudn tarnideg sr oups 4
Tabl1e. 1F.in ansctiaablif loirtyuT mw:e lkveesy t andafrodrs
sounfidn ancsiyaslt ems 9
Tabl1e. 2F.S SaAn dR OSCm odulceosm pleted (published
andu npublisahsoe fIdJ )u l2y0 0m4a,j oerm erging
markceotu ntries 13
Table C1o.u3n.tm reym bersohfsi epl ecitnetde rnational
organiza(t2i0o0n2s) 26
Tabl3e. 1B.a nkirnegg ulationc-ornedliattieodni anl ities
IndoneIsiMaFp' rso grams 53
Tabl3e.2 I.M Fa ssessomfeI nntd oneBsCiPac 'osm pliance,
Septem2b0e0r2 57
Table C3l.a3s.s ificoafIt nidoonnse sbianaiknn spect1i9o9n8s-,9 96 3
Tabl3e. 4I.n doneassisacenlt a ssifiacnadpt rioovni sioning
standaprodsst,- crisis 64
Tabl3e. 5O.ffi ciacla piatnadNl P Lr atimoasj,oI rn donebsainakns ,
firsqtu art2�0r0 2 66
Tabl4e. 1S.e lecctoerdp orgaotvee rnarnucleeT sha,i land,
andA siabne sptr act2i0c0e3,- 4 82
Tables
x
Table C4L.S2As. u mmacroyr porgaotvee rnasnccoerAs eisa,2 002 91
Tabl5e. 1S.e lecctoerdp orgaotvee rnarunlceeMs a.l aysia,
andA siabne sptr act2i0c0e3,- 4 121
Tabl6e. 1A.s scelta ssifisctaatnidoaanrn ddps r ovisioning
requiremfeoKrno trse baann ks 137
Tabl6e. 2R.e visKeodr ecarne dcieti lrienggu lations 140
Tabl6e. 3M.a joKro recaonm panies: aSreeloaefsfc otremda l
Acknowledgments
lAS complia2n0c0efi3,n ancsitaalt ements 156
Tabl6e. 4M.a joKro rebaann kSsc:o roensB CBS1 99s9o und
financidails closstuarned ards 159
Tabl7e. 1S.u bstacnotmipvlei acnicre2c,0a 0 5 169
Thankasr ed uet ov ariionudsi viadnudai lnss titwuhtoia osnssi sitne d
three seaarncdph r eparaotfti hoisnst udtyh:se taafftt hIen stiotfDu et­e
fenacned S tratSetguidcai teN sT Ui nS ingapwohreerI se p eanv te reyn joy­
ablyee aarsa v isifteilnlgao nwdB, a rDreys kaenrdY ueFno onKhgo ngf or
encouramgeit noag p plfyoa rf ellowtshheiarpne df or suppmoyrr tei­ng
search; YCeheomnifgno ghr e rf rienadnldey f ficient atshsLeiS sEt ance;
fogrr antmiena gy ear's tolc eoanvdeui cnti trieasle aorvceh2r 0 01-th2e;
KoreFao undatfioiornn v itmietn ogK oreians ummer 200f0oa rra rnadn g­
inags eroifei sn tervtiheJewa sp;aF no undatEinodno wmeCnotm mitftoere
fundianr ge searcthoT otkryiiopn2 00m2y;f ormaenrdc urrreenste arch
studeinntcsl,u dYionngg -Ki ThKiitmi,nP aonn gsudhirak, Wang-Hwi Lee,
andH young-Ckhyeuwy ,h oh elpteood r ganiinztee rviinse owmsce o untries
andw hor espontdoev da riroeuqsu efsotirsn formaHtoigoHiny ;u nf or
hiass sistaanncdhe o spitianvl airitoypu asr otfst hweo rlLde;o naSredb as­
tiaann dD evSia nftoihr e lpitnoag r ranignet erviinJe awksa rta; Michael
Woodf oirn troduicntAi soiJnaes;a n-Fram,:ois Drolet faonrd Oskar Tetzlaff
datcao llecVtainoensW;se as fto erd ittihnebg i bliogPraauplhDayu; r bin­
Westfboypr r epartihneig n deaxn;df inatlotl hye m anyi ntervieiwne es
different coguennterrioepusrs olwvyhi oid nefdo rmaatnido no fftuernt her
assisttaotn hcipesr ojeMcatrT.k h atchmeard eh elpcfoumlm enutpso tnh e
genearraglu meanntdp arotfts h e manusTchirtiipnPtao.nn gsudhainrda k
KheamasRuedoan gvbaontg ha vhee lpcfoumlm enotnts h Teh ailacnhda p­
terT.w oa nonymoruesv iepwrerosv iedxetde nsainvdc eo nstruccotmi­ve
mentosn t hew holmea nuscrpirpotm,p tianf gu ndamernetsatlr ucturing
andm anya lterattoid oentsa Riolgse.Hr a ydoann dt he seerdiietasot r s
xii Acknowledgments
Corneplrlo vidae gde neromuisx tuorfea dvicaen de ncouragemaetcn rtu ­
cial poTienrtess.a JesioanuowdHs ekrim an Rapabpootrhpt r ovidmeadn y
helpfsuulg gestoinoh nosw t oi mprotvhee f inal proNdounceot ft. h ea bove
isi na nyw ayr esponsfiobrlr ee mainienrgr orTshi.s b ooki sd edicatteod
Ninaa ndo urw onderfcuhli ldren,a nLdBa erna,a ndt om yp arents.
A.W.
Abbreviations
ADB AsiaDne velopmeBnatn k
ADR AmericDaenp ositRoercye ipt
AMF AsiaMno netaFruyn d
APEC Asia-PaEcciofinco miCco operation
BAFIA Bankinagn dF inancIinaslt ituAtcito( nMsa laysia)
BC...BS BaslCeo mmittoeneB ankinSgu pervision
BCP BaslCeo reP rincipfolreB sa nkinSgu pervision
BFSR BankF inancSitarle ngRtaht in(gMso odyI'nsv esSteorr vices)
BIS Bankf orI nternatSieotntalle ments
BI BankI ndonesia
BNM BankN egarMaa laysia
BOK Banko fK orea
BOT Banko fT hailand
CAMELS Capilta adequaAcsys,e qtu aliMtayn,a gemenEta,rn ingLsi,q uidity,
andS ensitivity
CAR CapiltA adequaRcayt io
CCL ContingCernetd iLti ne( IMF)
CCS ComprehensCiovnes olidaStuepde rvision
CEO ChieEfx ecutOiffivcee r
CPSS CommittoeneP aymenatnsd S ettlemeSnytsst ems
CDRC CorporaDteeb tR estructuCroimnmgi tt(eMea laysia)
DCF Discounted FlCoaws h
DPM DeputyP rimMei nister
DR DepositRoercye ipt
DSBB DisseminaSttiaondna rBdusl leBtoianr (dI MF)
DTA DeferrTeaxd A sset
xiv Abbreviations Abbreviatixvo ns
EMEPG EmergiMnagr kEemti nePnetr soGnrso up KFAS KoreFai nancAicaclou ntSitnagn dards
EPB EconomPilca nnBionagr (dK orea) KITC KoreFaa iTrr adCeo mmission
EPF Employees PrFouvnid(d Meanlta ysia) KLSE KualLau mpuSrt ocEkx change
ESOP EmploySehea rOew nersPhriopg ram KSE KoreaSnt ocEkx change
FATF FinanAccitailTo ans Fko rce LLL LegaLle ndiLnigm it
FDI ForeiDginr eIcntv estment LOI LettoefIr n tent
FDIC FederDaelp osIints uraCnocrep ora(tUinoint Setda tes) MAS MonetaAruyt horoifSty i ngapore
FIDF FinanIcnisatli tutDieovnesl opmFeunntd( Thailand) MASB MalaysiAacnc ountSitnagn daBrodasr d
FHC FinanHcoiladli Cnogm pany MEFP MemorandoufmE conomaincdF inanPcoilailc ies
FLC Forward-LoCorkiitnegr ia MICG MalaysIinasnt iotfCu otrep orGaotvee rnance
FSA FinanSceiravli ces A(uUthnoirtKieitydn gdoFmi)n;a nSceiravl ices/ MITI MinisotfIr nyt ernatTiroandaaenl dI ndus(tJrayp an)
SuperviAsgoernyc( yj apan) MSE MinisotfSr tya te-OEwnnteedr pr(iIsnedso nesia)
FSAP FinancSieacltA osrs essmPernotg ram MOF MinisotfFr iyn ance
FSC FinanScuipael n'1Csoomrmyi ss(iKoonr ea) MOFE MinisotfFr iyn anacnedt he Econ(oKmoyr ea)
FSF FinanSctiaabli Floirtuym NBFI Non-BaFnikn anIcnisalt itution
FSLIC FederSaalv iangnsdL oanIsn suraCnocrep ora(tUinoint Setda tes) NEAC NatioEncaoln omAicct iCoonu nc(iMla laysia)
FSS FinanScuiaple rviSseorrvyi( cKeor ea) NEP NewE conomPiocl i(cMya laysia)
FSSA FinancSiyastlSe tma biAlsisteys sment NGO Non-GovernmOerngtaanli zation
FY FinanYceiaalr NOP NetO penP osition
G7 GrouopfS even NPL Non-PerfoLrmoianng
GIO GrouopfT en NTA NetT angiAbslsee ts
G20 GrouopfT wenty NYSE NewY orSkt ocEkx change
G22 GrouopfT wenTtwyo OBS Officeo fB ankiSnugp ervi(sKioorne a)
GAAP GeneraAlclcye ptAecdc ountPirnign ciples OECD OrganizaftoEirco onn omCioco peraatnidoD nev elopment
GATT GenerAaglr eemoennT ta riaffnsdT rade OFC OffshFoirnea nCceinatle r
GODS GenerDaalt Dai sseminSattainodna rd PCA PrompCto rrecAtcitvieo n
GLC Government-LCionmkpeadn y PCG PrinciopfCl oersp orGaotvee rna(nOcEee D)
GOI GovernmoefnI tn donesia PPP PurchaPsionwgeP ra rity
IAIS InternatAisosnoacli aotfIi nosnu raSnucpee rvisors PSPD PeoplSeo'lsi dafroPirat ryt iciDpeamtoocrrya (cKyo rea)
lAS InternatAicocnoauln tiSntga ndards ROA RetuornnA ssets
lASB InternatAicocnoauln tSitnagn dards Board ROCA Rismka nagemeOnpte,r aticoonnatlrC oolm,p liance,
IBRA IndonesBiaanRnke structAugreinncgy andA ssqeuta lity
ICGN InternatCioornpaolrG aotvee rnanAcses ociation ROSC Repoorntt hOeb servaonfSc tea ndaarnddCs o des
IFAC InternatFieodnearlao tfiA ocnc ountants ROE Retuornn E quity
IFIs InternatFiionnaanlIc nisatli tutions SC Securities Commission (Malaysia)
IFRS InternatFiionnaanlRc eipaolr tSitnagn dards SODS SpecDiaatlDa i ssemination Standard
IMF InternatiMoonnaelt aFruyn d SEC SecuriatnidEe xsc hanCgoem mission
IMFC InternatMioonneatlaa rnydF inanCcoimamli tt(eIeM F) SET StocEkx chanogfTe h ailand
100 InstiotfDu itree ctors SFC SecuriatnidFe ust urCeosm miss(iKoonr ea)
IOSCO InternatiOorngala nizaotfSi eocnu riCtoimemsi ssions SME SmalolrM ediuEmn terprise
KASB KoreAac countSitnagn daBrodasr d SOE State-OEwnnteedr prise
KCCG KoreaCno mmittoenCe o rporGaotvee rnance TRIS ThaRia tianngdI nformaSteirovniC coe.s
KDB KoreDae velopmBeanntk UMNO UnitMeadl aNyast ioOnragla nisation
KDIC KoreDae posIints uraCnocrep oration 'WTO WorlTdr adOer ganization
Introduction
InternSattainodnaaanrldd s
FinanGcoivaernla nce
Thefi nanccioanlt agtihoasntp refardo Tmh ailiannm di d-1t9o9th 7e
resoftA siaan dt heonnt oB razRiuls,sa inad, fintaotl hldeye velowpoerdl d's
financcieanlt ewrassa m ;:yors hoctkot heg lobeaclo nomIytw. a sa lsao
shoctkog lobpaoll iteilciaatlne dsa w atersihnte hdle o ng-rudnenbiantge
aboutthn ee efdo rre foorfmt hgel obfianla ncairaclh iteFcatcuewrdie t.ah
critshiasdt e stabisloimzoeef td h weo rlmdo'ssrt a pigdrloyw icnogu ntries,
governmientn htmesa jodre veloped countrbiyle asu rnecshpionngd eodn e
oft hmeo st ambgiotivoeurnsa rnecfeo rm pirnlo ijvemicentmgso rIyt.ms a in
objecwtaitsvo te r ansfdoormme sfitniacn cgioavle rnainncee m ergimnagr ­
kecto untarnidei,snp artirc,tu oel raaditcha"etc er onyciosrmr,u patinodn ,
nepotiassms"u mteold i aett hhee aortfA sia('asnb dy e xtensmioosontf
thdee velowpoirnlgd fi'nsa)n cviualln eirtya.b il
Thee nvisatgreadn sforwmaasct oinosni swtietanhn t e wc onsenisnu s
Westepronl icymaankdia ncga decmiircc Ilnep sr.o mottihnaeg d optoifo n
"internabteispotrn aaclt sitcaen"d oafrr desg ulatthireoe nf,o prrmo jaedc­t
vocatate rda nsiftrioaomr n e latidoinsaclr,e taipopnraortayocr he gulation
toa m oraer m's-length, nondiscOrtehteihroasnv aseru ym maap­proach.
riztehdia ssa t ransiftrioaom" n d evelopmsetnatttaoelw "aa rn de oliberal
"regulasttoa(rteye." Jg a.y,asu2r0i0y.5aA1) k ecyh aracteristic of "regulatory
neoliberbaelsistse mea,ns"a ni detyaple i,st hdee legaotifro eng ulation
ande nforcetmoes nttr o"nign dependent"T haeag ceotnf dc eileesg.a tion
itsehlafbs e comaes sociwaittiehnd t ernabteispotrn aaclt aistc hepe r eferred
soluttioto inm ien consiasntdep noclyic cayp tuprreo bleTmhsem. o2d eolf
regulanteoorlyi bersaulgigsems ttsh aetg heantct iheast appelnyf oarncde
regulasthioounbl edt echnocarpaotliicta,in cdia nls,u lfartoepmdr edatory
2 G<;verninFgin ance InternatiSotndaaanlrd asn Fdin ancG<Jivaernla nce3
vestiendt erOenscteas c.h iefvoefirdn ancrieaglu lation, cdoeuvne­loping neoliberaagleiniscnmyd, ependfernocgmeo vernmienEn atsA ts iaan dt he
tries mmoirgefh utl ly-and hmoupcehmf ourlelsy a fely-paritni cipate transpaorfpe onlciyt iinctaelr veanrtoeif otnle onw .3
thgel obfianla ncsiyaslt em. Id on o'wti sthoi mpltyh at gtohaoelfi mprovrienggu laftroarmye works
Howwas sucah converguepnocner egulanteoorlyi bertaolb ies m ind evelocpoiunngt irmsii essg uiOdnet dh.ce o ntriaitrcs yl ,e airntl hyie n ­
achievTehdeg? o vernmeonftm saj orc ountriseaswt hes olutiinot nh e tereosfdt esv elocpoiunngt trhiaeitsm provemienfin ntasn cgioavle rnance
elaboraotfbi eosnpt r actiinctee rnatsitoannadlao rffid nsa ncial regula­ arer ealiIznet dh.eE asAsti anc ontetxhtel, o wp rioraiftfyo rtdoep dr u­
tioann dt hper omotoifdo env elocpoiunngtryc ompliawnicttehh esstea n­ dentrieaglu laitnti hopen a sbte camvee rdyan geroaunsdt hreattehnee d
dardCso.m pliawnicteh intersntaatnidoainrsdad ilsf fefrreontmth ied eal viabiolfni atyt iodneavle lopment sHotwreavtteehrgi,eid eesta.h atth cer e­
type ofr egulanteoorlyi berbaultii ths amsb, e esne ea,sn t hmea imne ans atioofni ndependent regulatorya nadeg nefnocricWeiesns,gt earpnp­lying
ofb ringaibnoguc to nverguepnoctneh lea ttIae rr.g uteh atth iasp proach stylset andawrodusl,bd e c onsidenreecde ssaanrdsy u fficiteoan cth ieve
hasse rifoluasFw isr.ts htie,n ternational stparnodcaiersdsi-sn s eevitttai­ng thiosb jecwtaiasvt be e snta ivIenp. r actiihtca ess,o metimes simply allowed
blpyo litiacnidoz fetdpe rno duscteasn datrhdaastr seo metivmaegsua en d politiancdi aasnsso civaetsetiden dt erteops utrss tuheef o rbmu tn ott he
ato thetri meisn approptroti haceti er cumstoafpn acretsi ccuoluanrtr ies. substaonfcc oem pliance.4
Seconedv,ew nh einn ternasttiaonndadalro ad psp rocaucrhr "ebnetps rta c­ Thea rgumehnatst h regee neriamlp licaFtiiornbssot.t, sh c holaanrds
ticceo,u"n tcroym pliainsoc fet peono arn dt hien ternamtieocnhaaln isms manyp roponeonfit nst ernactoinovnearlg heanvcueen derestitmhaet ed
foprr omotcionmgp liaanrwceee a k. oftleanr ggaep thsa tc anp ersbiestwte efno rmraull aensdi nstituotni ons,
Thef ocoufst hibso oikps r imaurpioltnyh lea tptreorb lIenmp .a rtairc,u l thoen eh anda,n da ctual apnodal citcboyer h avoinot rh,oe t heSre.c ond,
whadte termitnheeq su aloiftc yo mpliawnictiehn ternastitoannadla rds? develocpoiunngt rhiaevvsea riwoauysos f r esisitnitnegrn atcioomnpalli ­
Andr,e lattoet dh iwsh,yi sp ooqru alciotmyp liasnucset aionvaebtrli em e ancaen dc onvergpernecses utrherso uwghha Itc al"lm occko mpliance."
desptihtaeep parecnotnlsyi deprraebslsefu rroemm u ltilaitnesrtailt utions Ino thewro rdtsh,e riesm orer oomf opro lifclye xibainlddi itvye rgence
andc apimtaarlk ettoas d opitn ternatsitoannadlaA rtdv sa?r iopuosi nts frorme gulanteoorlyi bertahlaimnsa mn ya ssumTeh.i rtdh,ea rgument
Id iscwuhsyss o mien ternasttiaonndaaalrr doesf p ooqru aloirtyi nappro­ largseulpyp otrhtvesi etwh adto mesptoilci atnidci sn stitcuotnitointnsou e
priaftoemr a ndye velocpoiunngt rbiuemts y,m aifno ciusus p otnh ceo m­ beo fg reiamtp ortaenvceinena p oliacryet ah aitss u pposedlyc ohne­avily
plianpcreo blaenmd th eo bstatchlipesl acients h ep atohf c onvergence straibnyfie nda ncgilaolb alizTahteoi voenr.pa rlolc eissos n eo fc omplex
upon regunleaotloirbye ralism. adaptantoistoi nm,p aldeo ption.
Thep robliesnmo ts imptlhyar te gulanteoorlyi berailsai nis dme tyaple
thacta nn evebref ulrleya liiznpe rda ctRiacteh.Ie a rr,g uteh atth dee pth
oft hceo mpliapnrcoeb lreemv etahlastt h em aisnp onsoofrt sh ien terna­ The Approach ofTh isBo ok
tionsatla ndaprrdosj meicstc onstrtuhepedo liotifsc tast ter ansformation
ands ou nderestitmhpaeot sesdi boifrl eiftyo frami lBuerhei.tn hdve i sioofn Ip rocebeyd astkhirnegm ea in questiotnows h.a etFx itredsnottA , s ian
encouraagt irnagn sittoiwoarnre dg ulaatnodir nys titubteispotrn aaclt ice countcroimepswl iyt ihn ternarteigounlaalst toarnyd aSredcso?nw dh,ae tx ­
isas tropnrge sumptthiaWoten s terrnu laensdp ractciocuelbsde p atched plaicnosm pliaanncdne o ncompliTahnicretd?ow, h aetx teinsnt o ncom­
relateiavseoilnlyty do e veloppoilnigt eiccoanlo mthieerse dbye -politicizing plianac seu stainablef odrse tvrealtoepgiyn g acnodup nrtirvsiaeetcset or
financrieaglu laItnip orna.c thiocwee,v weers ,ea eh ighployl iticriezfeodr m actors?
proceisnws h icdho mesgtriocu tphsa stt antdol osfer otmh esree forms Toa nswtehrfie r sqtu estIii onnv,e stciogmaptlei awnictseho moef t he
mobiltiobz leo cokrt om odiifyt I.ns omceo untrainedis ns, o maer eoafs mositm portainntt ernatsitoannadlab rytd hsme a icnr isicso-uhnittro ife s
regulatthieosgner, o uhpasv seu ccessfully thpene enwer tergautleadt ory East AIsndioan:e Msailaa,y SsoiuatK,ho reaan,dT hailaTnhde.sw ee re the
framewowriktsth,h er esutlhtat th eq ualoiftyc ompliawnictiehn terna­ prime tartghieent tse ronfa rteifoonrma lp raonjdwe hcetrr ee gulaftaoiryl ­
tionsatla ndavradrsiw eisd ely. urewse rsee eanse ndemiFcu.r5t herimonthr eer ,e centt hpeacssouetn tries
Lowc ompliwiantchie n ternasttiaonndaadlor ednsso atl wamyesa n poor hade njoyare edp utaftioogrno oedc onomgiocv ernances uacncde srsef­ul
qualrietyg ula(ttihoonu igtoh ft end oesI)n.t hem ores uccescsofuunl­ for(mH agg1a9r9dH0 a;g gaarnddK aufm1an9 9129,9 W5o;rl dB an1k9 93).
tripeosl,i taincdea clo nomeilci htaesva ed aptiendt ernasttiaonndaalr ds Fort herseea sotnhsEe,a sAts iacno untarriaeer sg uatbhlceyr uctieasoltf
tos uilto ccaoln ditNiootnasb.cl oyn,t rtaotr hype r escriopftr ieognusl atory ther efoprrmo jaencdtp, e rhaiptbss,e shto pe.
InternatSitodananarlad nsFd in ancGioavlern anc5e
4 GoverniFnniga nce
Ifa,sI a rguaes ,i misltaorcr aynb et olwdi trhe spteocfi tn ancsiuaple rvi­
Indeefdo,sr o mei nternasttainodnaarlEd assA,ts iacno untrhiaevase
sioann da ccounqtuianlgwi htya,et x platihnivssa riacbolmep liarnecceo rd
goodc ompliarnecceo rTdh.el evaenld q ualoiftyc ompliabnyAc sei an
witihn ternasttiaonndaa(lrm dyss e coqnude stiIoa nr)g?ut eh aatc o mbina­
countwirtihet sh Ie nternaMtoinoentaalFry u nd('IsM FS)p ecDiaatlDa i s­
tioonfe xterannaddl o mesptriecs shuarvemesa diedt i fficufloAtrs iang ov­
seminaSttiaonnd (aSrDdD S)e,x afmoprl fea,i hriilsgy hT .h6e rwase ad elay
ernmenttoos p pocsoem pliaonpceenw liyt thh eisnet ernasttiaonndaalr ds.
betweetnh oen soeftt hcer iasnidsE asAts iacno mpliawnictSehD DSb,u t
Howevseurc,ch o mpliacnacnbe ev ercyo stflopyra rticudloamre sitnitce r­
thesdee lawyesr neo tm uchw orsteh atnh eG 7a vera(gseet ea b1l.e1 ).7
esttsh aatr oef tweenl olr ganiaznedpd o litiicnafllluye Gnotviearln.m ents
Korea watsh teoe nnlctyoh unttroay d hetroeS DDSp,u ttiiwtneg l alh ead
caugihnt bentvheeecsnoe n tradpircetsosrouyfr teoespn ft oars tratoefg y
ofm osott hOeEre Dc ountries.
mockc ompliaTnhciceso. m bintehsre h etoarnidoc u twaradp pearaonfc e
Ont hfea coefi tA,s iacno unthraiveaesl sdoo nmeu cht oc ompwliyt h
compliawnictiehn ternasttiaonndaatlro dgse t",hietrh relatibvee­ly hidden
otheirn ternasttiaonndaalnr odtsa,b ly itnfih noasnec rieaglu laatinodn
haviodriavle rgfernocsmeu csht andaTrhdeds e.gsr oefme o ckc ompliance
superviascicoonu,n tainndcg o,r porgaotvee rnaHnocwee.v, ae srw ew ill
variseusb stanatciraoAlsslsiya a n dh asb eerne ducoevde tri mien s ome
seet,h qeu aloiftc yo mpliainntc hee saer eiasso ftelne sgso otdh afno r
areabsu,it t ism portatnecntedo sb eu nderestibmvta htoewsdhe o f ocouns
SDDSa,n ds ometiimtie sqs u iltoew T.o p revioenwee xamplar ee,c ent '
thceo mpliapnocweeo rfn eolibiedrea(alHs a 2l0l0 3a)n do fi nternational
assessomfec notr porgaotvee rnainnAc sei caa met ot hef ollowcionng­
institauntdim oanrsk e(tHso2 00J1a;y asu2r0i0y5Pa;i ri2e0 05S;i mmons
clusion:
2001S;o ederb2e00r3gT) h.i isnt ursnu ggetshtassto meel emeonftd se vel­
opmentaanldp redatsotrabyte eh avaisosro ciwaittpehrd e -cEraissAtis si a
A fewy earasg or egulatwoerrsep raisefdo tri ghtenuipno gn r uleasn dr egu­
perstihsotu,g nho ww ithainne ntirneelwfy o rmraelg uladtiosrcyo urse.
latiotnosd;a iyti sa pparetnhta mta nyo ft hesreu lehsa veo nlay limited
Thiasr gumeinsct o nsiswtietonhtt h elri teratthuasrtte r estsheers e lative
effecotn c orporabteheav iouWrh.e rei mplementtehde,ay r eo ftenno tc ar­
rieodu te ffectiv(eelLyS.E Am ergingM arke2ts0 053,) resilioefdn icffee rveanrti eotfci aepsi talism.9
Thet hiqrude staisoknws h ym ockc ompliamnicgehb tea s ustainable
stratoevgetyri mMey.a nswiestr h amto ckc ompliasntcrea teagriseeu ss ­
tainawbhleeni ti sv erdyi fficuolrct o stflooyru tsitdoeo rbss ervteh ter ue
TABLE1 1. qualoifct oym plia""n'cheei.nn formaatbiooutnth aec tubaelh avoifro erg ­
SDDS postianngdc, o mpliadnatceess e,l ecctoeudn tarnideg sr oups ulataogreyn cainedos ft hceo mpanthieeys supervipsoeo mrio,sc kco mpli­
ancset ratceagnib ees su staibneacbaluems aer kaectt oarnsdi nternational
Datmee tadataD atweh esnu b-
Datoef sub-were postesdc roinmb eetSr D DS 3-1 3-2 institfiuntdii otdn isffi cutlodt e teacntdt op unirsehl atipvoeolqryu ality
scrip(t1io)n t hDeS BB( 2) specifica(t3i)o (ndsa ys)( days) compliaIna creg.ut eh atth icso nditaipopnl tioet sh em aiinn ternational
standaarsdsso ciwaittfiehnd a ncrieaglu laatnidmo unc hl etssoS DDS.
Averagael l 20A pr1i9l 982 O ctob1e9r9 8 30M arc2h0 01 10,60 897
countries
G7a verage5 Jul1y9 96 19N ovember 3J anua2r0y0 0 12,58 1,214
1996 Methoodlogy
Indonesi2a4 S eptem-21M ay1 997 2Jun2e0 00 13,28 10,91
ber1 996
Them ethodoloagpipcraolaac dho ptheedrr ee quirseosm e justiAfisc ation.
Korea 20S eptem-30M arc1h9 98 1N ovemb1e9r9 9 1,121 571
noted aIbm oavienp,lr yo ceveiidan -decpatsshet udiinte hsme a icnr isis-hit
be1r996
Asicaonu ntriSeisn.tc heqe u aloifcty o mpliwaintcihen ternasttiaonndaalr ds
Malaysia2 1A ugust 19S eptember1 S eptem2b0e0r0 1,4501 ,422
1996 1996 variceosn sidearcarbotlshyse csaes ethsi,sc omparaatpipvreo sahcohu tledl l
Singapor1eA ugust 19S eptember3 0J anua2r0y0 1 16,19 15,71 usm ucha boutthi em paocfdt o mesatnidic n ternaftaicotnooanrlc s o mpli­
1996 1996 anceo utcomIef so.cm uasi nolnyi nternasttiaonndaaflro wdrhs i cphr ivate
Thailand9 A ugust 19S eptember1 6M ay2 000 13,57 13,17 sectcoorm pliacnocsaetn sdt hipradr mtoyn itorcionstgte sn tdob eh igh:
1996 1996
bansku pervsitsaonrdya crodrsp,o rgaotvee rnance satnadan cdcaorudnst,­
SourcesI:MF D, SBBht:t p://dsbb.Aipmpfl.iocragti/o nsd/dw';Seubb/sscriptio(nadcacteess2s/2Je udn e insgt andaIrtid sisn t. h easree tahsa Ite xpemcotc kc ompliasntcrea tegies
2005). tob eb otmho raet traacntdim voers eu stainTahbiclsoe n.t rwaisttsSh D DS,
NotTehe:a verage ifisgfu orarel6 l1 S DDsSu bscriabsoe rf2s 2J u ne2 005.