The evolving importance of banks and securities markets

Asli Demirguc-Kunt, Erik Feyen and Ross Levine ()

No 5805, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Keywords: Debt Markets; Economic Theory&Research; Banks&Banking Reform; Markets and Market Access; Access to Finance (search for similar items in EconPapers)
Date: 2011-09-01
New Economics Papers: this item is included in nep-ban and nep-fmk
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Citations: View citations in EconPapers (24)

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Related works:
Journal Article: The Evolving Importance of Banks and Securities Markets (2013)
Working Paper: The Evolving Importance of Banks and Securities Markets (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:5805

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