Outline
I. Financial Development and the Associated Policy Trade-Offs
II. Perspectives from the Turkish Experience
Financial development is a multi-dimensional concept.
Different dimensions of financial development:
Financial depth (credit deepening)
Access to financial services
Intermediation costs
Stability of intermediation (non-performing loans)
Policies that affect the pace of financial development are multi-dimensional as well:
Fiscal performance (low public borrowing requirement)
Monetary policy performance (low and stable inflation)
Legal-structural reforms and banking regulations
Financial and trade openness
Financial literacy