Government Intervention and Financial Sector Development

Rashmi Arora
Additional contact information
Rashmi Arora: University of Bradford

Chapter 3 in Development Finance, 2017, pp 53-78 from Palgrave Macmillan

Abstract: Abstract Government interventions in the financial sector have prevailed in a number of countries until the early 1990s. Criticisms against financial repression and poor performance of public banks, however, turned the tide against government intervention. As a result, the 1990s saw the introduction of financial sector reforms in several developing countries with the objectives of improving allocative efficiency of the financial institutions and financial markets. However, the recent global financial crisis has led to a resurgent interest on the role that governments can play in the financial sector. Overall the academic literature has not reached a consensus on whether the government can play a positive or negative role. Nonetheless, the findings of the emerging literature focus on the positive countercyclical role played by the public banks during crises times and on the government’s useful role in supervision and regulation, in building financial infrastructure and in promoting macroeconomic stability.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:psifcp:978-1-137-58032-0_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137580320

DOI: 10.1057/978-1-137-58032-0_3

Access Statistics for this chapter

More chapters in Palgrave Studies in Impact Finance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().