02002cas a2200265 a 4500 AALejournalIMF018720 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484373361 1018-5941 BD-DhAAL BD-DhAAL Bannister, Geoffrey. Dollarization and Financial Development / Geoffrey Bannister, Jarkko Turunen, Malin Gardberg. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Despite significant strides in financial development over the past decades, financial dollarization, as reflected in elevated shares of foreign currency deposits and credit in the banking system, remains common in developing economies. We study the impact of financial dollarization, differentiating across foreign currency deposits and credit on financial depth, access and efficiency for a large sample of emerging market and developing countries over the past two decades. Panel regressions estimated using system GMM show that deposit dollarization has a negative impact on financial deepening on average. This negative impact is dampened in cases with past periods of high inflation. There is also some evidence that dollarization hampers financial efficiency. The results suggest that policy efforts to reduce dollarization can spur faster and safer financial development. Mode of access: Internet Gardberg, Malin. Turunen, Jarkko. IMF Working Papers; Working Paper ; No. 2018/200 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/200/001.2018.issue-200-en.xml IMF e-Library