Developing Economies’ Long-Term Financing Shortfall
Although emerging markets have accounted for roughly half of global economic growth in recent years, advanced economies continue to dominate the supply of long-term funding. The mismatch between the time horizon of available funding and that of investors and entrepreneurs is a source of vulnerability that impedes growth.
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WASHINGTON, DC – Since the global financial crisis, “banking” has practically become a swear word. But, while banks undoubtedly have the capacity to inflict serious damage on economies and livelihoods, a well-run financial system can offer significant benefits. A growing body of evidence, highlighted in the World Bank Group’s recent Global Financial Development Report,shows that financial institutions and markets have a profound influence on economic development, poverty alleviation, and the stability of economies worldwide, and that a pragmatic assessment of the state’s role in finance is warranted.