Government Intervention and Financial Sector Development

Abstract

The scarcity of capital in Russia was such that no banking system could conceivably succeed in attracting funds.. .. Supply of capital for the needs of industrialization required the compulsory machinery of the government (Gerschenkron 1962) pp 19-22). …whatever its original objectives, state ownership tends to stunt financial sector development, thereby contributing to slower growth (World Bank 2001.p.123)

Do Transparency and Anti-Monopoly Policies Matter for Financial Development? Evidence from a Panel ARDL-PMG Approach

“…restrict democratic retrenchment and combat corruption but these transparency policies might not achieve their desired effects due to lapses of implementation and compliance. In contrast, fiscal transparency enhances government effectiveness and spending efficiency (Montes et al, 2019) which fosters the financial infrastructure, the functioning of financial markets, and stable macroeconomic activities in the long-run (Arora, 2017;Le, Kim, & Lee, 2016).…”

Regional financial disparity in India: can it be measured?

“…This finding is especially surprising considering public banks are viewed as harbingers of economic development and overcome problems of market failure in financial sector and finance socially valuable projects in less developed regions and rural areas (Yeyati et al ., 2005). Prior to 1991, Indian public banks have played a significant role in nationwide banking spread, reduction in rural poverty and increase in rural output (Burgess & Pande, 2005; Arora, 2017). In the post-reform period after 1991, there is evidence of public banks having reduced their presence in lagging states through rationalisation of bank branches including rural branches and fall in credit (Kohli, 1999; Narayana, 2000; Shete, 2002).…”

“…2 Lately, the crucial role played by public banks in contributing to financial stability especially in crisis (e.g. 2007–08 global financial crisis) has been well acknowledged (Andrianova, 2012; Arora, 2017; Panizza, 2012; Yeyati et al ., 2007). 3 Furthermore, the years covered in our study show different phases of India's economic development since the 1991 reforms.…”

Poverty Alleviation Through Financial Practices: The Importance of Microfinance

“…There is a consensus in literature that contributes to the belief that governments still play an important role in the financial sector, which is to supervise, regulate, and build a financial structure as well as to provide macroeconomic stability, such as a stable currency and a moderate inflation rate, which ensures favorable conditions for the development of MFIs (Arora 2017) (Foschiatto and Stumpo 2006, pp. 28-29) (Yunus 2011).…”