Chapter 4: Assessing Financial Structure and Financial Development
Extensive evidence confirms that creating the conditions for a deep and efficient financial
system can contribute robustly to sustained economic growth and lower poverty (e.g., see
Beck, Levine, and Loayza 2000, Honohan 2004a, and World Bank 2001a). Moreover, in
all levels of development, continued efficient and effective provision of financial services
requires that financial policies and financial system structures be adjusted as needed in
response to financial innovations and shifts in the broader macroeconomic and institu-
tional environment....