World Economic Forum’s third annual Financial Development Report

Peru managed to rank among the top 20 economies that performed well in the financial stability portion of the World Economic Forum’s third annual Financial Development Report -released on Thursday- in which the country ranked 48th of 57 world’s leading financial systems and capital markets.

The World Economic Forum (WEF) reported that, like many other countries in Latin America, Peru has showed high scores in financial stability, earning 20th place in this ranking.

According to the 2010 Financial Development Index, Peru ranks 48th, that is six spots down from last year (42nd).

This result is obtained from the sum of seven indexes: institutional environment (41st), business environment (47th), financial stability (20th), banking financial services (47th), non-banking financial services (48th), financial markets (51st) and financial access (44th).

As last year, emerging market economies performed well in the financial stability portion of the Index. Malaysia, Chile, Brazil, the Slovak Republic, Mexico, Morocco, China and Peru all scored in the top 20 of the financial stability pillar.

The United States and the United Kingdom managed to take the top spots despite stagnant or weakening scores in the third annual Financial Development Report.

The Financial Development Report ranks 57 of the world’s leading financial systems and capital markets, which this year edition includes eight Latin American nations: Chile (30th), Brazil (32nd), Panama (39th), Mexico (43rd), Colombia (47th), Peru (48th), Argentina (52nd) and Venezuela (56th).

It analyses the drivers of financial system development in advanced and emerging economies to serve as a tool for countries to benchmark themselves and establish priorities for reform.

The rankings are based on over 120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors.

The breadth of factors covered in the report means that countries with high financial instability scores like the United Kingdom and US could still achieve a high relative ranking in the Index due to other strengths. (Andina)