The demand for loanable banking funds in countries of the region, except Japan, has originated mainly from the financing of foreign and domestic trade. Even in India, about one-half of the demand is from this source. This state of affairs is easily explained by the slow economic development of some countries and by the limited industrialization of others. By contrast, in Japan, as in the industrialized economies of the west, the major demand for loanable banking funds originates from the needs of industry for short-term finance.

Related Subject(s): Economic and Social Development
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