financial sector operations policy

The Financial Sector Operations Policy sets out the general strategic and operational role of the Bank in this sector and establishes the overall framework for the Bank’s activities. Approved by the Board of Directors on 6/7 July 1999, this is the third such policy.

The financial sector has been a priority for the Bank since its inception. The first policy was adopted in 1991 and focused on the broad elements of decentralisation, privatisation of state institutions and formation of new private institutions. It also emphasised the need for governments to build sound financial laws and regulations. The strategy was revised in 1996 and focused on the process of financial intermediation and on institution building to strengthen the performance of financial sectors.

Reflecting both developments in the operational environment and the Bank's experience with its financial sector operations, this third refocused operational policy takes a more systemic view, with particular emphasis on how the Bank’s operations affect the development of the financial system as a whole. The approach also recognises that the financial sectors in each country possess a different mix of financial institutions and financial instruments, reflecting their particular histories and tradition. A key element of the refocused operational policy is thus the development of country-specific operational approaches.