The Evolving Importance of Banks and Securities Markets
This paper examines the evolving importance of banks and securities markets during the process of economic development. As economies develop, they increase their demand for the services provided by securities markets relative to those provided by b...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111013154944 http://hdl.handle.net/10986/3611 |
| Summary: | This paper examines the evolving
importance of banks and securities markets during the
process of economic development. As economies develop, they
increase their demand for the services provided by
securities markets relative to those provided by banks, such
that securities markets become increasingly important for
future economic development. Some exploratory evidence
further suggests that deviations of a country s actual
financial structure -- the mixture of banks and markets
operating in an economy -- from the estimated optimal
structure are associated with lower levels of economic activity. |
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