"Financial Depth in Turkey: An Historical Perspective (I)
Mustafa Kutlay
Monday , 10 March 2008
In today’s globalized world, financial systems and their level of development and efficiency are key factors that contribute to the economic development of countries[i]. The proper working of the financial system is critical to the success of an economy, because financial system is the main coordinating mechanism that allocates capital from savers and then distributes it to the investors. If capital goes to the wrong uses or does not flow at all, the economy will operate inefficiently and economic growth will be low. The soundness and smooth functioning of the system avoid the misallocation of the capital thereby contribute to the efficiency of the economic development. In this regard, financial depth is the key indicator that shows the development stage of financial sectors."
More:Turkish Weekly Comment - Financial Depth in Turkey: An Historical Perspective (I)
