Today some developing countries experience low rates of economic growth, partly because of under-developed financial systems and a concomitant lack of financial intermediation. Financial markets, including the institutions involved such as banks, through the process of financial intermediation, serve as a conduit for the efficient and optimal allocation of financial resources and can accelerate the rate of economic growth.
Complexity and proportionality When I look at the European regulatory framework with this condition in mind, I see room for improvement. With some notable exceptions, we currently more or less apply the same rules and procedures to all banks, irrespective of their size and their relevance for financial stability. In practice, this puts small institutions at a disadvantage compared to their larger peers.