Characteristics of Finance in The Under Developed Countries

The common characteristics of the financial systems in underdeveloped countries are: 1.The predominance, in the early stages, of foreign banks and of foreign influence in the financial mathers; 2.The intervention by the national government after the attainment of independence, in the management of the financial systems; 3.Seasonal flucturations of the financial variables dominated by foreign trade; 4.The duality of the money market structure, .., the existence of the organized and unorganized money markets, and the state of underdevelopment of both the money and the capital markets; 5.The duality of interest rates; and 6.The lack of the right type of financial institutions, and the state of inefficiency of their activities.