Financial System Development in Emerging Economies: An Array of MINT Economic Bloc

Abstract

This study investigated financial system development in emerging economies of Mexico, Indonesia, Nigeria and Turkey (MINT)with a view to ascertaining the level of financial institutions and markets depth, access and efficiency and intra-dependency of these financial system development indicators in member countries from 2000-2020. Comparatively, the level financial institutions and markets depth, access and efficiency in some MINT member countries were below standards for emerging economies especially in Nigeria, while some performed above the benchmark.VAR results revealed that indicators of financial system development were strongly endogenous and exogenous in the short and long run except financial institutions efficiency and financial markets depth, depicting independent influence and significant self-predictions. Based on the findings, researchers recommends that MINT monetary zone  should be established to facilitate cross border effect of financial institutions and markets development  in member states, and there should be common policy measure to pursue a robust financial institutions and markets development to complement and harness innovations in the different components of the financial system.