Financial development, institutions and banks

Isaac Marcelin and Ike Mathur

International Review of Financial Analysis, 2014, vol. 31, issue C, 25-33

Abstract: This paper presents a framework for understanding the interactions between political and legal institutions, property rights protection, and their implications for financial development. Whereas the literature has answered questions on why some countries lag behind in terms of financial and economic development, the current study suggests how to get around some institutional attributes to spearhead financial intermediation and economic growth through a set of institutional, information, and banking reforms. It finds little support that common law legal heritage is more suitable than French civil law for some key features of financial development. It concludes that types of institutional and market reforms are more relevant to financial intermediation than legal systems. It proposes some ways forward to increase financial intermediation; and expects, over the long run, the proposed approach to financial development to be beneficial for a number of developing countries.

Keywords: Political institutions; Law and finance; Property and contracting rights; Financial development and intermediation; Power of creditor (search for similar items in EconPapers)
JEL-codes: E4 G20 G21 G28 G32 O16 P37 P48 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:31:y:2014:i:c:p:25-33

DOI: 10.1016/j.irfa.2013.09.003

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