Regional Economic Growth and Financial Innovation: Perspectives from the Turkish Banking Sector

Banking Sector Openness and Economic Growth

Banking sector openness may directly increase growth by improving the quality of financial services and increasing funds available, or indirectly by improving the efficiency of financial intermediaries, both of which may reduce the cost of financing, in turn, increase capital accumulation and economic growth. The objective of the paper is to empirically reinvestigate these direct and indirect l...

The Importance of Financial Intermediation in Sustaining Economic Growth and Development: the Banking Sector Review

Banking Sector Policies and Financial Development: The Case of Iran

In this paper we empirically examine the effect of various banking policies on financial sector development. To this end, an econometric model in the context of Co-integrated VAR is employed. The results show that financial liberalization and reforms have a significant and positive effect on the banking sector development while inflation rate has a negative effect. Furthermore, the high GDP...

Central Banking and Financial Innovation

We review the literature regarding the impact of financial innovation on the monetary transmission mechanism and on the way the central bank can achieve its ultimate goal, that is to control the price level.We argue that, although the form of central bank instruments and current methods for implementing monetary policy may change, the goals that the policy makers try to achieve by employing the...

Financial sector origins of economic growth delusion∗

After financial crises, GDP is typically persistently weak compared to pre-crisis trends. We build a simple competitive general equilibrium model to highlight role that the financial sector may have in boosting GDP to unsustainable, undesirable levels before financial crises. Allowing banks to freely trade in financial securities exacerbates the problem. Because loans generate collateral, banks...