Financial systems, innovations and development

A sound financial system is one of the basic institutional prerequisites for generating rapid economic development. Its effective ness and efficiency, however, depend critically on the system's ability to introduce such financial innovations and instruments that facilitate, stimulate and promote investment by entrepreneurs. This strategic role of the financial system is the central theme of this book. Dr Bhatt discusses this theme with great clarity and in a style that makes it intelligible to any educated lay person interested in the relationship between finance and development-a relationship that is ignored by mainstream economists and not stressed adequately even by development economists.

The author describes the critical innovations that have shaped the evolution. of different financial systems as well as the international capital market. This is followed by a lucid and critical presentation of the salient characteristics of the German Universal Banking System, the Japanese Main Bank System, the Lead Bank Systems of India and the Anglo-American System.

is an important book. This is which formulates an analytical framework that links financial innovations to the develop ment process; presents an integrated account of different financial systems in a historical and comparative framework; and suggests both the desirable and the likely pattern of evolution of the financial system in different developing countries. It should be of interest to a wide readership including those involved in the fields of banking and finance, industrial develop ment and entrepreneurship, development economics, and development studies.