According toBertus,Jahera and Yost , Global financial markets are a
fundamental ingredient in the production and maintenance of the world'seconomic activity. Overall financial condition improve the economicperformance applying five
broad functions (see Levine, 2005, p. 4)
1 The production of ex ante information about investments.
The monitoring of investments for which they provide financing.
3 The facilitation of risk management and diversification.
4 Mobilizations and pooling of resources.
5 The facilitation of trading goods and services.
Bertus,Jahera and Yost argue that banking system is the most important
factors of financial market. And it is widely acknowledged that a wellstructured banking system, defined by its supervisory practices, risk taking,and governance, promotes greater financial performance and economicstability. Further they say that
Differences with respect to corruption, democracy,and legal origin, for example,
create heterogeneous regulatory environmentsthat impede the implementation of universally effective policies. The intent of this study is to empirically evaluate the association between a country'sbanking system characteristics and its overall level of income and incomegrowth.Paper show identify that over the past two decades most of all financialmarket facing financial crisis and which leaves the negative effects on