Investment and advisory firm Alliance Capital Limited has described financial markets as an important tool for financial resources mobilisation for long-term investment.
The firm, in its weekly commentary, noted that financial markets, through financial institutions such as banks, companies and individual investors, provide loans that enable companies to supplement their income and buy assets.
“These assets are used to produce more and increase output of a nation, thereby enhancing economic growth. Thus, in a nutshell, financial markets influence economic growth through provisions of wealth, credit creation, solution to liquidity problems and policy formulation,” reads the commentary in part.
Reserve Bank of Malawi (RBM) governor Dalitso Kabambe is on record as having said the central bank will continue with its endeavour to revolutionise completely the entire country’s financial system.
He singled out the stock market as a viable tool for companies to raise cheap capital.