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Establishing viable capital markets

Jun 11, 2019 | BIS | Bank for International Settlements (BIS)

Developed and deep capital markets can play a key role in financing economic growth as well as influencing financial stability and the transmission of monetary policy. As economies develop and investment projects become larger and more complex, efficient resource allocation and risk-sharing are facilitated by the information aggregation activity and variety of financial claims provided by capital markets. Moreover, capital markets have played an important role in financing the recovery from the Great Financial Crisis (GFC), a reminder of their “spare tyre” role in the financial system.