Long-term Finance and Economic Growth

Title Long-term Finance and Economic Growth
Author Name Group of Thirty
Link http://hofinet.org/documents/doc.aspx?id=1562

The report seeks to quantify future financing needs and identifies the barriers that may hinder the supply of long-term financing, possibly undermining future economic growth. To that end, the report promulgates four principles that should govern the provision of long-term finance:
1. The financial system should channel savings from households and corporations into an adequate supply of financing with long maturities to meet the growing investment needs of the real economy.
2. Long-term finance should be supplied by entities with committed long-term horizons.
3. A broad spectrum of financial instruments should be available to support long-term investment.
4. An efficient global financial system should promote economic growth through stable cross-border flows of long-term finance, supported by appropriate global regulation.

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