Title: ROLE OF STATE-OWNED FINANCIAL INSTITUTIONS IN INDIA: SHOULD THE GOVERNMENT "DO" OR "LEAD"?
Abstract: The importance of a sound financial sector in efficient intermediation of resources is generally accepted. A case for government intervention in the sector might also be made in the initial stages of a country’s development, given systemic failures in achieving certain economic goals. The paper argues that, in the case of India, this role is now redundant; the public sector should no longer be directly intermediating resources. There remain, however, certain aspects of the financial sector (which have merit good characteristics) where the government might be required to catalyse developments; these are what may be termed its “market completion” role. These interventions should essentially be for establishing enabling mechanisms that facilitate financial transactions.
Publication Year: 2004
Publication Date: 2004-01-01
Language: en
Type: article
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Cited By Count: 5
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