Banking Solvency is Required for Economic Growth : A Comment on World Financial Crisis

In the present short paper author attempts to point out econometrically the importance of banking sector viability as a requirement for economic growth. In the recent financial crisis many economies are facing the danger of financial collapse. The remedy is difficult, cold minded policy-makers are needed and the most important of all is that banking sector as the cornerstone of capitalism should at any cost be protected, for economic growth relies on a healthy financial system. Panel data regression analysis will be used based on the Eviews software package