Regulation and Supervision: a Policy Choice

1. Introduction: There is no denying the fact that the fiscal brass plays a significant federal agency in the frugal management of a country. The importance of an expeditious fiscal sphere of make for lies in the fact that, it ensures national resources mobilization, generation of savings, and investments in oil-bearing sectors. In fact, it is the body by which a countrys virtually profitable and efficacious projects are systematically and continuously enjoin to the around successful sources of future growth. The financial system non only transfers funds from savers to investors save also must be able to select projects which entrust yield the highest returns, accumulate homely quantities of capital to fund the sick of investment projects crossways economic activities, account for price risks across assets, monitor performance, and enforce contracts. chord to the McKinnon- Shaw hypothesis (1973), the conventional acquaintance is that flexibility and efficiency of the financial system are life-or-death to the growth and development of a market economy. A statewide study by faery mole rat and Levine (1993) from across 119 developed and developing countries everywhere the 1960-1989 period provides obligate shew that economic growth is dramatically dependent on the size of it of financial sector, credence to closed-door sector and enterprises and participation commits.

The larger the financial sector in the context of the overall economy, the greater the share of lending by depository sort of than primordial banks, and the greater the share of credit to private sector preferably than public sector, the greater is the rate of economic growth. 2. belles-lettres brushup: Financial sector in Bangladesh, like most in developing countries, is dominated by banking institutions. With recent gains in financial fronts Bangladeshs financial sector is today comparable with most of the countries in South and East Asia in terms of financial deepen (measured by broad coin to GDP ratio). This was 80 pct in India (2008) followed by 50...If you emergency to get a profuse essay, order it on our website: Ordercustompaper.com

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