KBA Workshop - Euromoney Conferences

The “supply leading” hypothesis:
The argument is that financial deepening
is indeed an engine of economic growth.
In fact, financial deepening is a vital precondition
for tangible growth and
development.
It contends that the development of the
financial system and in particular its
evolution into a market oriented sector
would provide an efficiency stimulus to the
process of capital accumulation in a way
that promotes economic growth.