Bank-Based Finance

Bank-Based and Market-Based Financial Systems: Cross-Country Comparisons ArXiv ID: ssrn-569255 “View on arXiv” Authors: Unknown Abstract Financial systems tend to be more market-based in higher income countries, where stock markets also become more active and efficient than banks. Financial sy Keywords: Market-Based Finance, Bank-Based Finance, Financial Structure, Economic Development, Macro Complexity vs Empirical Score Math Complexity: 1.5/10 Empirical Rigor: 8.0/10 Quadrant: Street Traders Why: The paper relies on statistical analysis of cross-country data with simple correlations and regressions, but its mathematical formalism is minimal and descriptive. It is highly data-intensive, constructing new indices for 150 countries and testing specific policy determinants, making it ready for empirical validation. flowchart TD A["Research Goal: Compare Bank vs. Market Finance across Countries"] --> B["Methodology: Cross-Country Analysis"] B --> C["Data: Macro Variables & Financial Structure Indicators"] C --> D["Computation: Panel Regressions & Clustering"] D --> E{"Key Finding: Wealthier nations shift<br>from bank-dominant to market-dominant systems"} E --> F["Outcome: Market efficiency rises<br>with economic development"]