Those small businesses among current bank borrowers whose information problems are the least severe -- that is, those that are the least informationally opaque -- would presumably be the most likely to be funded outside of the banking system.
Improvement in corporate governance has helped impart a high degree of financial stability. The balance sheet of the banking system has expanded at a fast pace. Since December 31, 2002 till December 31, 2005, the balance sheet has recorded a growth of 64.5%, which in all respect is quite significant. Deposits of the banking system registered unprecedented growth of 69% since 2002.