Financial systems and monetary integration
The way the financial system assists in these processes is often discussed under the heading of 'financial development'. 'By the process of financial development is meant the gradual evolution, in the course of economic development, of financial institutions - money, banks and other financial intermediaries, and organized securities markets' (Arndt, 1983, p.86). Financial development places command over the disposal of real resources in the hands of those agents that control flows of money, financial institutions and financial markets. Thus the holding of financial resources is in many ways just as important to the overall development process as is the control over land resources, or physical infrastructures such as transport, power and water resources, or the development of human capital and an educated workforce.