This study looks at the analytics of and experience with financial reform. It examines the relationship between the financial and real sectors, and its effect on the economy at large; the process of sequencing, including the timing of opening of the capital account; the impact of financial reforms on capital allocation efficiency.

1. Introduction: motivation for the study Gerard Caprio Jr; Part I. Reforming Finance: Approaches and Importance: 2. Finance, public policy and growth Mark Gertler and Andrew Rose; 3. Banking on financial reform? Gerard Caprio Jr; 4. Credit where it is due? Fabio Schiantarelli, Izak Atiyas, Gerard Caprio Jr, John Harris, and Andrew Weiss; Part II. The Reform Experiences: 5. An overview of financial reform episodes Izak Atiyas, Gerard Caprio Jr., and James Hanson; 6. The impact of financial reform: the Turkish experience Izak Atiyas and Hasan Ersel; 7. Financial policy reform in New Zealand Dimitri Margaritis, Dean Hyslop and David Rae; 8. Korea's financial reform since the early 1980s Sang-Woo Nam; 9. An assessment of financial reform in Indonesia, 1983–90 John Chant and Mari Pangestu; 10. Financial reform in Malaysia Zainal Aznam Yusof, Awang Adek Hussin, Ismail Alowi, Lim Chee Sing, and Sukhdave Sing; Part III. Liberalizing the Capital Account and Domestic Financial Reform: 11. An open capital account James Hanson; 12. Financial liberalization and the capital account: Chile, 1974–84 Salvador Valdes-Prieto; 13. Policy issues in reforming finance: lessons and strategies Gerard Caprio Jr, Izak Atiyas and James A. Hanson.