Question

Some economists suspect that one of the reasons that economies in developing countries grow so slowly is that they do not have well-developed financial markets. does this argument make sense?

Answer 1

The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country.