Fjármálaþróun
Fjármálaþróun, or financial development, refers to the evolution and improvement of financial systems within an economy. This encompasses the growth of financial institutions, markets, instruments, and regulations. A robust financial development is generally considered a key driver of economic growth, facilitating the efficient allocation of capital, reducing information asymmetry, and enabling risk management.
Key aspects of financial development include the increasing sophistication of banking systems, the expansion of stock
Conversely, underdeveloped financial systems can hinder economic progress by limiting access to credit, increasing the cost