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	Table of Contents
p. 3 of 58 BACK | NEXT Purpose and Structure of the Toolkit Part One: Introduction and Overview I. The Financial Sector: An Overview A. The Role of the Financial Sector B. Financial Sector Development C. Law, the Financial Sector, and Economic Growth II. International Financial Standards and Standard-Setting Organizations III. Implementation and Monitoring Part Two: Preconditions and Infrastructure for Financial Sector Development Part Three: Financial Regulation and Supervision Part Four: Regional Financial Integration Part Five: ADB's Intervention in the Financial Sector Bibliography Glossary and List of Abbreviations Acknowledgements

Financial Sector Legal and Regulatory Toolkit : Part One: Introduction and Overview

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I. The Financial Sector: An Overview

The financial sector is the portion of an economy through which financial resources (capital) are allocated. Its main functions can be summarized as follows:

• mobilization of savings (thereby creating concentrations of capital that allow exploitation of economies of scale),
• allocation of capital (helping to judge where returns are most likely to be obtained),
• monitoring of the use of investments by individual firms and governments, and
• pricing and management of financial risk, including for investors.

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