ABSTRACT
The extent of financial markets in an isolated region is crucial to the prospects of economic growth and development within that region. In addition to its impact on efficient mobilization of indigenous savings, the existence of a regional financial market can play a crucial role in the linkage of a region to a national capital market. If the region has developed an internal market for funds which revolves around a financial center having information and transaction links into the region, this network can be used by outside agents to place funds in the region. The conceptualization of financial development is a reaction to what may be termed a "linear" model of such development. The failure to investigate regional financial market formation may be an oversight on the part of economic historians who are addressing broader issues. A region which has a centralized commercial market with well-developed links throughout the hinterland will have a foundation for an efficient regional financial market.
