The main issues in this regard, therefore, are related to, what may be called, policies complementary to credit or financial services for upliftment of rural economy. Illustratively these are: First, fiscal policy could play an enabling role in two ways in terms of (a) targetting the poor for subsidy; and (b) enhancing public investment while encouraging private investment that would benefit the rural economy.
For example, does bank consolidation influence the availability of credit to local small businesses? A number of studies have addressed this question and have yielded mixed results.