n AfricaGrowth Agenda - Is the free market unaided an antidote to financial exclusion?

Volume 2010, Issue 1
  • ISSN : 1811-5187


Financial markets and institutions impact on economic growth through the different functions that they provide in the economy. Some of the important functions of financial intermediaries involve mobilization of savings, facilitation of exchange, monitoring of managers and enforcement of corporate control, reduction of search costs, as well as management of liquidity risks. Therefore, financial intermediaries play an important role in economic development since they reduce the cost of acquiring information and conducting transactions; and facilitate savings mobilization. In providing such services to the economy, banks as intermediaries enhance resource allocation and accelerate growth (Levine 1997, Van Zyl et al, 2006).

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error