I think it fair to say that the main function of the financial system is to serve the needs of the real economy, encouraging productive investments, allowing risks to be diversified, mobilising savings, monitoring firms’ use of funds, etc. To this end, the development of both markets and sound financial institutions plays a key role.
To the extent that increased financial integration allows the tasks of markets and institutions to be completed more efficiently, it will bring about greater benefits through two main channels: increased capital accumulation and higher productivity of capital.