These trends are positive; however, a great deal more remains to be done, including broadening the range of financial instruments available to savers and borrowers; taking further steps to ensure that credit evaluation and extension are based on sound economic criteria; increasing competition in banking and finance; improving credit availability for consumers and smaller firms; removing the remaining controls on interest rates; and eliminating the use of quantitative and administrative measures to influence the amount and composition of capital investment.
Finally, capital markets require an appropriate institutional foundation to function effectively: Well-defined property rights (including intellectual property rights), transparent accounting standards, good corporate governance, effective supervisory oversight of banks and markets, the consistent enforcement of contracts, and rules that allow for orderly bankruptcy proceedings for unprofitable firms all help to support efficient investment.