chapter  7
Financial sector policies for enterprise development
ByANDY W. MULLINEUX, VICTOR MURINDE
Pages 39

If there were full information about the creditworthiness of enterprises and other economic agents, banks would probably not exist. All finance would be ‘direct finance’ in the sense that lenders would finance enterprises and households directly, without the need for banks or other financial intermediaries.1 Likewise, there would probably be no need for money since borrowing and financing would involve transfers of assets between portfolios of wealth.