Although much could be said about the positive contributions of the financial system to the real economy, for the sake of brevity let me highlight three contributions which I believe are of fundamental importance:  1  Finance and growth – theory and evidence, Handbook of Economic Growth (2005). BIS central bankers’ speeches  1  1.
First, an important role of the financial system in the real economy is to intermediate between savers and borrowers to create a mutually beneficial symbiotic relationship:   From the point of view of borrowers the existence of sound financial intermediation means that people can obtain mortgages to buy homes; entrepreneurs can obtain funding to bring new ideas and innovations to life; and governments can undertake long-term projects to build roads and hospitals.