Banking intermediation and economic growth : the case for Malta

Abstract

The Banking Sector is regarded by many economists as being the driver for economic growth. Based on this, this dissertation seeks to determine whether banking sector development in Malta influenced economic growth during the periods 1980 and 2003. Moreover, this dissertation examines the channels through which banking Intermediation Influences economic growth In Malta, the third question that is addressed is whether banking intermediation causes the growth in National income or vice-versa This is essential since it determines whether policymakers should focus on policies to promote economic growth or policies that develop the banking sector in Malta.