Sometimes the market’s reaction is uninformed, unfair or just plain wrong. But over the longer run, vibrant, if on occasion volatile, financial sectors do confer worthwhile benefits on an economy. They are not in any sense a magic bullet to achieve prosperity, but the evidence is fairly clear that properly functioning financial sectors do contribute to better growth.
That is a not inconsiderable benefit to the firms, governments and citizens of the countries concerned. 1  Executives’ Meeting of East Asia-Pacific Central Banks. Details of this group’s composition, history and work can be found at http://www.emeap.org. 2  See http://www.emeap.org/press/02june03.htm. 3  See http://www.emeap.org/press/15apr04.htm. 2  BIS Review 21/2004