Financial Institutions and Developing Countries - 2162 Words

Introduction Financial institutions are the most important institution in the development and financing the countries regardless of the developing countries, the countries has developed or is still underdeveloped. A large role in the country cause financial institutions must be sensitive and transparent in governance. However, not all financial institutions are banks. Financial institutions are included bank, finance companies, merchant bank, credit and leasing companies, national savings banks, co-operative bank, discount houses, factoring companies and so on. In addition, financial institutions can be classified into two which are depository and non-depository institutions. The common function among all these institutions is they were assigned to mobilize the fund from those who had fund to those who short of fund. So, we know that they were also known as financial intermediaries. Development and establishment of the bank Bumiputra actually closely related to the economy as well as propel the country towards a balanced development. Malaysia is a rapidly developing country in 1991 until just before the Asian financial crisis. Besides that, the economy is also at par with the developed economies in East Asia such as Japan, South Korea, Taiwan, and Hong Kong. A high growth level in excess of 9.0% was accompanied by an increase in the per capita income of the population in 1970 from RM993 to RM4357 in 1990. In additional, inflation rate also decreases so does the level ofShow MoreRelatedForeign Direct Investment And Developing Countries1442 Words   |  6 Pagesbenefits countries through a transfer of resources in the form of capital, technology, management of resources, creation of work opportunities, and a positive impact on the country’s balance sheet, typically through an increase in export volumes. 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Maurer and Haber (2003) suggest that in the process of financial liberalization and financial deepening, the financing channels for low income peopleRead MoreThe World Trade Organization Essay1690 Words   |  7 Pageskey multilateral economic institutions provide financial support though grants and loans as a way to enable economic and social development to occur in developing countries. The three main institutions i will be talking about include the World Bank, International Monetary Fund and the World Trade Organisation. These organisations provide loans, grants and practical assistance to governments, in addition to loaning money to assist private businesses within developing countries. They also play a significantRead MoreThe Structure And Operation Of The Global Economy Essay1451 Words   |  6 PagesIIA—Section 2 The structure and operation of the global economy have undergone unprecedented changes in recent decades. 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After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans