The effect of direct lending on long-term economic growth

In international practice, there have been many cases of government interference in the functioning of financial markets via regulation. Such measures are taken for a variety of reasons. For example, governments may have the desire to offset the impact of adverse economic shocks in the short-term. Another common motivation may be the wish of the state to set this or that trend and direction for the development of the national economy through the creation of appropriate limits in the financial sector. In theory, the justification for such intervention is usually the risk of a more critical failure in the market to trade financial services products and services in comparison with traditional goods and services.