Banks play a fundamental role in the growth of the economy of the country. A bank is an institution engaged in accepting deposits and granting loans. One of the important roles of the banking industry is to channelize the deposit money for the purpose of the lending activity. A pattern of...

This paper investigates the causes of the "vanishing effect of finance" detected in recent studies. The results highlight that the negative effect of the financial system on growth is mainly driven by advanced economies, whereas finance is still beneficial for income increases in developing...