- 1971 - 2007 (predominately 1983-2001) (Creation)
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Extent and medium
Name of creator
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.
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Scope and content
The fonds consists primarily of Economic and Sector Work (ESW) records produced by the various financial sector development department, division, and unit incarnations, including: the Financial Development Unit (INDFD) and the Financial Development Division (INDFD) located in the Industry Department (IND) of the Energy and Industry Vice Presidency (EIS) from 1983 to 1987; the Financial Policy and Systems Division (CECFP) located in the Development Economics Vice Presidency (DEC) from 1987 to 1992; the Financial Sector Development Department (FSD) located in the Finance and Private Sector Development Vice Presidency (FPDVP) from 1993 to 1997; the FSD located in the Finance, Private Sector Development, and Infrastructure Network (FPSI) from 1997 to 1998; the FSD located in the Financial Operations Vice Presidency (FIOVP) from 1999; and the FSD located in the Financial Sector Vice Presidency (FSEVP) from 1999 to 2001. ESW work was done on a country-wide basis and usually performed in collaboration with financial and economic operational staff located in regional offices of the Bank. Reports produced from ESW research helped inform subsequent financial sector development policy and lending decisions utilized for financial sector reform.
The financial sector development ESW records consist of country mission research records with extensive background research, including: newspaper clippings, journals, and articles related to financial sector issues; and statistical and financial data, research studies, annual reports, financial statements, and financial laws and regulations reports published by the central bank of a specific country, a particular country ministry office, or by other financial institutions specific to a country. External and Bank produced financial sector reports and studies specific to a country are also included with research records. The records also consist of ESW mission planning, reporting, and proposal records, including: project proposals; project initiating memoranda; back-to-office reports; mission reports; mission notes; terms-of-reference; project appraisal reports; and aide-memoires. Correspondence and memoranda between financial sector development devoted units, regional staff, and members of financial ministries or other financial sector institutions within in a country are also included.
The ESW records also consist of the reports and records produced after ESW mission work, which relate to subsequent financial sector development policy and lending decisions. This includes meetingagenda and minutes for meetings between financial sector ESW collaborators, and also reporting to the Executive Board of Directors, the Office of the President (EXC), and other World Bank officials concerning financial sector ESW progress, policy development, and lending. The ESW records additionally contain country analysis and case study reports produced from ESW research. The reports focus on financial sector related issues, such as: bank restructuring and privatization; capital market development; financial sector infrastructure; pension reform; financial laws and regulations; and insurance. Financial sector lending proposals, reports, and loan agreement records are also included for numerous types of financial sector development loan programs, including: Structural Adjustment Loans (SALs); Sector Adjustment Loans (SADs); Technical Assistance Loans (TA); and Financial and Enterprise Sector Adjustment Loans (FESAL).
The fonds also consists of records from the conferences, seminars, and workshops organized or attended by financial sector development related units of the CECFP from 1987 to 1992 and the FSD department of the Finance and Private Sector Development Vice Presidency (FPDVP) from 1993 to 1997. The records include speech transcripts of presenters from CECFP, FSD, and presenters from outside agencies or other World Bank units. The records also consist of printed presentation slides, transparencies, and conference and seminar programs. CECFP and FSD organized workshop and seminar records include correspondence regarding planning and post reporting of events, training materials, presentation slides, and speech transcripts. Topics of conferences, seminars, and workshops cover financial sector related issues, such as banking, payment systems, regulation, restructuring, and supervision of financial conglomerates.
Chronological correspondence files maintained for FSD within the FPDVP from 1993 to 1997 are also included in the fonds. These files consists of incoming and outgoing correspondence that cover numerous topics including: support of country missions; ESW operational work; financial development policy reports; lending instruments proposals; and FSD management and organization.
The fonds also consist of background records related to operational policy "OP 8.30 - Financial Sector Operations", which was adopted by the World Bank in 1992 as an operational directive "OD 8.30 -Financial Sector Operations", and revised and adopted as an operational policy in 1998. The records include extensive correspondence and memoranda with attachments, including draft "OD/OP 8.30" policy revisions from April 1991 to November 1997. The correspondence and memoranda are primarily between FSD staff, Development Economics Vice Presidency (DEC) staff, the Office of the President (EXC), and members of the Operations Policy Committee. Background reports on financial sector work within the Bank are also included. The records also include meeting minutes and agenda for the Operational Policy Committee and the Board of Executive Directors.
The fonds additionally includes records of Diana McNaughton from when she served as the Senior Manager for FSD within the FPDVP from 1993 to 1997. The records consist of her presentation materials, including: printed slides, transparencies, speech transcripts, background research, and correspondence regarding presentation preparation. The presentation records focus on numerous topics, such as bank restructuring, capital market development, and financial sector reform. The records also include theplanning records, training module materials, and correspondence for seminars and workshops organized by FSD or attended by McNaughton as part of FSD liaison with external organizations. The records also consist of management and organization records related to FSD. This includes correspondence, meeting minutes, and agenda for FSD planning retreats; business and strategic framework plans related to the FSD activities of bank and enterprise restructuring, finance intermediation, capital markets development, and financial sector infrastructure; and reporting presentations planned for the Executive Board of Directors of the World Bank Group.
The fonds also includes the records of Rodney Lester from when he served as Lead Specialist for FSD within the Financial Sector Vice Presidency (FSEVP) from 1999 to 2001. Most records are related to the Economic Sector Work (ESW) and Financial Sector Assessment Program (FSAP) country projects. This includes reference material, including: annual reports; financial statistical data reports; and financial statements produced by numerous country central banks, country offices, or other financial institutions within that country for both ESW and FSAP projects. FSAP records additionally include IMF produced FSAP country reports and terms-of-reference reports. Lester's records also include background correspondence focused on the Bank Crisis Management Program of FSD from 1993 to 1998, and records related to the East Asia Financial Crisis of 1997. Lastly, the Lester records also consist of Strategic Compact planning records for the financial sector development operations of the World Bank from 1994 to 1999. This includes Executive Board of Directors meeting minutes and agenda, business plans, work programs, progress reports, and implementation plans related to organization and planning of financial sector functions and activities within the Bank.
Lastly, similar to the Rodney Lester records, more extensive records related to the FSAP country projects are also included in the fonds for the years 2000 to 2007. These records include: annual reports, financial and statistical data reports, and financial regulation and laws reports produced by numerous country central banks, country offices, or other financial institutions within that country. The records also consist of technical notes, and FSAP reports produced jointly by the IMF Monetary and Financial Systems Department and the World Bank Financial Sector Vice Presidency (FSEVP). Project mission terms-of-reference, back-to-office reports, and aide memoire reporting records are also included for FSAP records.
Appraisal, destruction and scheduling
System of arrangement
The following arrangement is provisional. Records are arranged into seven series:
- FSD Economic and Sector Work (ESW) report records
- FSD conferences, seminars, and workshops records
- FSD chronological correspondence files
- FSD operational policy development records
- Records of FSD Senior Manager Diana McNaughton
- Records of FSD Lead Specialist Rodney Lester
- Financial Sector Assessment Program (FSAP) records
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