ABSTRACT
This conclusion presents some closing thoughts on the concepts discussed in the preceding chapters of this book. The book discusses the importance of finance for economic development has long been recognized by the nascent financial literature. It reinstates the role of rent on financial deepening and financial stability. The book accumulates a handful of cases to analyze the rent-effect on financial institutions. It discusses the mode of financing in Islamic banks is involved with profit-and-loss sharing contracts, which are practically more risky than the conventional pre-determined interest rate financing. The book argues that bank rent opportunity, mainly created and maintained by the regulatory framework, should be given to banks as an incentive mainly for absorbing the transaction cost. It investigates the effects of monetary policy, especially zero and negative interest rates, on banks' performance, considering rent as an incentive framework. From the perspective of banks, frontier economies make monitoring more difficult, but such activities are crucially important for the economy.
