If they accompany firms with good growth prospects into the market, developing corporate finance services that take less capital and liquidity, they can curb risks and improve earnings. To attain these objectives they need to strengthen relationships with firms and avoid conflicts of interest. Firms too must contribute to the development of the capital market.
Corporate financing needs cannot be met by bank credit alone. Diversifying funding sources will require a commitment to greater accounting transparency, openness to outside parties, and above all capital strengthening. In order to gain the support of banks and investors, entrepreneurs will have to be the first to demonstrate their own faith in the prospects for their business.