INANCIAL SYSTEM AND ECONOMICDEVELOPMENT
The growth of output in any economy depends on theincrease in the proportion of savings/investment to anation·s output of goods and services.
The financial system and financial institutions helpin the diversion of rising current income intosavings/investments.
The financial system is possibly the most importantinstitutional and functional vehicle for economictransformation. Finance is a bridge between thepresent and the future and whether it be themobilisation of savings or their efficient, effective andequitable allocation for investment, it is the successwith which the financial system performs itsfunctions that sets the pace for the achievement of broader national objectives.