Financial Sector Development Sector

Identity area

Type of entity

Authorized form of name

Financial Sector Development Sector

Parallel form(s) of name

Standardized form(s) of name according to other rules

Other form(s) of name

Identifiers for corporate bodies

Description area

Dates of existence


Functional responsibility for financial sector development originated in the Financial Development Unit (INDFD) established in July 1983, which was located in the Industry Department (IND) of the Energy and Industry Vice Presidency (EIS). This unit was founded in the context of the 1980s debt crisis and turmoil in developing nations' financial sectors and institutions. The INDFD had the responsibility to carry out policy, research, and review work with regard to the financial sector. It additionally coordinated work with financial intermediaries in other Bank units as well as the International Finance Corporation (IFC), and the International Monetary Fund (IMF). In July 1985, INDFD was upgraded to a Division. Millard F. Long assumed the role of first Chief and later Division Chief in INDFD from 1983 to 1987.

As part of a Bank-wide reorganization in 1987, the IND was terminated. The staff and functions of the INDFD were transferred to the Financial Policy and Systems Division located in the Country Economics Department (CECFP) of the Development Economics Vice Presidency (DEC). CECFP was created in July 1987 with five other divisions, including: the Trade Policy Division (CECTP); the Debt and Macroeconomic Adjustment Division (CECDA); the Public Economics Division (CECPE); the Public Sector Management and Private Sector Development Division (CECPS); and the Special Studies Division (CECSS). CEC was responsible for providing leadership in the design and analysis of country development policies through researchpolicy work, operation advice and support, and training and liaison with outside research groups. CECFP focused specifically on financial policy and systems for financial sector lending, regulation, supervision, and restructuring. CECFP was led by Division Chief Millard Long from 1987 to 1991, and later by Andrew Len Tao Sheng in 1992.

As part of another reorganization that took effect in January 1993, the majority of financial sector development functions and staff from CECFP were transferred to the newFinancial Sector Development Department (FSD) located in the new Finance and Private Sector Development Vice Presidency (FPDVP). Some staff were also transferred to the Finance & Private Sector Development Division (PRDFP) located in the Policy Research Department (PRD) of the Development Economics Vice Presidency (DEC), which served as a research oriented division, and worked closely with the FPDVP departments, including FSD. FSD was created alongside two other subordinate departments in FPDVP, including the Private Sector Development Department (PSD) and the Industry and Energy Department (IEN). FSD was assigned responsibility for:

  • formulating and disseminating policies and guidelines with regard to its sector;

  • monitoring the effectiveness of policies and approaches;

  • maintaining effective relations with Bank-external organizations and professionals in the field; and

  • providing operational support, especially in the areas of financial sector organization and regulatory frameworks, specialized finance, bank restructuring and management, and capital markets development.

FSD work focused on the following themes: bank and enterprise restructuring; finance intermediation; capital markets development; and financial sector infrastructure. Millard Long served as Acting Director for FSD in 1993, and was later succeeded by Director Gary Perlin from 1994 to 1995 and by Acting Director Diana McNaughton from 1996 to 1997.

As part of the reorganization of the Bank in 1997, the FPDVP was terminated and replaced with the Finance, Private Sector Development and Infrastructure Network (FPSI). The research division of the PRDFP was also terminated at this time. FPSI was created along with three other networks: the Poverty Reduction and Economic Management Network (PREM); the Human Development Network (HDN); and the Environmentally and Socially Sustainable Development Network (ESSD). The FPSI consisted of four subordinate departments: the Financial Sector Department (FSD); the Private Sector Development Department (PSD); the Energy, Mining, and Telecommunications Department (EMT); and the Transportation, Water, and Urban Development Department (TWU). The responsibilities of FPSI included:

  • developing vibrant private sectors with rapid job growth by implementing the financial sector reinforcement program;

  • speeding up the emergence of livable, bankable, and competitive cities;

  • promoting the growth in energy and infrastructure provision that is environmentally sensitive;

  • stemming infrastructure deficit; and

  • sharing in the promise of the Information Age.

FSD activities focused on strengthening banking, capital markets, and regulatory policy in emerging economies. In 1998, the FPSI added the financial sector oriented Special Financial Operations Unit (SFO) and the Capital Markets Development Department (CMD) to address the East Asia Financial Crisis of 1997.

The FPSI was terminated, however, in January 1999 because the network became too large with multiple sector focuses; greater response was also needed for the East Asia Financial Crisis from financial sector related units. As a result, the functions of PSD, EMT, and TWU were transferred to the newly established Private Sector Development and Infrastructure Vice Presidency (PSIVP) and the FSD, CMD, and SFO functions were transferred to the financial sector oriented Financial Operations Vice Presidency (FIOVP). At its establishment, FIOVP departments included: the Financial Sector Practice Department (FSP); the Capital Markets Development Department (CMD); and the Special Financial Operations Department (SFO). The FIOVP, however, was short lived and was terminated in June 1999.

The FIOVP was replaced by the Financial Sector Vice Presidency (FSEVP), which was launched in July 1999. FSEVP retained the FSD, FSP, CMD, and SFO departments of FIOVP, and added the new Banking and Financial Institutions Department (BFI). The joint IMF and World Bank Financial Sector Assessment Program (FSAP) pilot program was also launched in 1999 as a response to the East Asia Financial Crisis, and was designed to rapidly assess and respond to financial sector crises. The FSP department assumed FSAP responsibilities, and FSEVP representatives were also responsible to sit on the joint IMF and Bank Financial Sector Liaison Committee (FSLC) to oversee implementation of FSAP missions, and review subsequent policy development and lending.

In 2001, the FSEVP was restructured to three departments, including: the Financial Sector Strategy and Policy Department (FSP); the Financial Sector Development Department (FSD); and the Banking and Financial Restructuring Department (BFR). FSEVP was restructured again in 2003, at which point it included: the Global Partnerships Program; the Financial Market Integrity and Money Laundering Program; the Financial Market Integrity Group (FSEFI); the FIRST Trust Fund Initiative (FSEFT); the Financial Sector Strategy and Policy Department (FSEGP); and the Financial Sector Operations and Policy Department (OPD).

In 2006, the FSEVP was terminated and its functions were transferred to the Financial and Private Sector Development Vice Presidency (FPDVP). The FPDVP was organized jointly by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). This joint effort was intended to combine the Bank's financial sector policy expertise and the IFC's rapid response advisory services to more effectively meet the growing demand for private and financial sector development services from developing countries. The FSEVP functions were combined with existing IFC private sector development oriented units, including: the Corporate Governance and Capital Markets Advisory (CCG); the Global Corporate Governance Forum (GCGF); and the Investment Climate Group (CIC). The joint IFC and MIGA Foreign Investment Advisory Service (FIAS) was also included in the new FPDVP. The transferring of FSE functions created the following new groups and advisory services: the Financial Market Integrity Group (FPDFI); the FinancialMarkets for Social Safety Net Group (FPDSN); the Financial Systems Group (FPDFS); and the Financial Sector Reform and Strengthening (FIRST) Initiative. Around 2010, the FPDVP was restructured, and the following groups were added: the Global Indicators and Analysis Group (GIA); the Global Markets Development Group (GCM); and the Financial Inclusion Group. FPDFS, CGP, CIC, FIRST, FIAS, and CGP units were retained.


Legal status

Functions, occupations and activities

Mandates/sources of authority

Internal structures/genealogy

General context

Relationships area

Access points area


Control area

Authority record identifier

Institution identifier

Rules and/or conventions used


Level of detail

Dates of creation, revision and deletion




Maintenance notes

  • Clipboard

  • Export

  • EAC