Improving Banking Supervisory Mechanisms
In the OIC Member Countries
17
Figure 2: GDP per Capita
Source: World Bank
Figure 3: GDP Growth Rate
Source: World Bank
3.1.2 Linkage between Real and the Financial Sector in the OIC Countries
In this section, the linkage between real sector and banking sector is investigated.
Banking sector plays an intermediation role by matching between lenders and
borrowers, which is crucial for channelling savings to investment. Therefore, ideally,
banking sector growth should work in tandem with the production side of the economy.
As well established in the economic development literature, an underdeveloped
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
GDP per Capita (constant 2005 US$)
2008
2009
2010
2011
2012
2013
-6
-4
-2
0
2
4
6
8
10
GDP Growth Rate
2008
2009
2010
2011
2012
2013