THEORETICAL ARGUMENTS FOR AND AGAINST THE MARKET BASED FINANCIAL SYSTEM
Philemon Mide
Department of Accountancy,
Federal Polytechnic Bali, Taraba State
Email: midadino@yahoo.com
ABSTRACT
This study explores into some bodies of knowledge in order to establish a preference by rating the performances of bank-based and market-based financial system. A sample t-test using the credit ratio ability (in terms of GDP) to private sector of each financial system was conducted on a random sample. Holding the legal factor and the level of development of financial players constant, the result plus other bodies of evidences give a priority rating to the market-oriented over the bank-oriented financial system.
