Importance of long term finance
Extending the maturity structure of finance is sometimes seen as being at the heart of long-term financial growth and development. By reducing rollover risks for borrowers and thereby lengthening the horizon of investments and improving performance, long-term finance contributes to faster growth, greater well-being, shared prosperity, and long-term stability in two important ways: first, by increasing the availability of long-term financial instruments, which allows households and businesses to address their life-cycle challenges, and second, by increasing the availability of long-term financial instruments.
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