These elevated saving rates may also reflect the consequences of domestic financial markets that are not fully functional: if borrowing is expensive or simply unavailable, households will be unable to tap expected future earnings to finance the purchases of cars and other long-lived durable goods but instead will need to postpone spending until they have accumulated the necessary cash.
Notwithstanding the progress made, more can definitely be done to bring regional financial cooperation to a level that is on par with the region’s economic and financial potential. BIS Review 86/2007  7  Financial cooperation and efficiency Financial market efficiency is important in accelerating economic development, and market efficiency also contributes to achieving and preserving macroeconomic stability.