WAYS TO ENSURE THE FINANCIAL STABILITY OF ENTERPRISES THROUGH THE USE OF MONETARY AND CREDIT INSTRUMENTS IN BANKS
DOI:
https://doi.org/10.5281/zenodo.18641496Keywords:
Commercial Banks, Capital Market, Financial Intermediation, Investment Banking, Economic Development, Financial Institutions, Securities Market, Banking Sector, Market Capitalization, Financial System DevelopmentAbstract
This paper examines the critical role of commercial banks in the development and deepening of capital markets
in both emerging and developed economies. Capital markets serve as key mechanisms for mobilizing long-term financial
resources, stimulating investment activity, and supporting sustainable economic growth. Traditionally viewed as institutions
primarily engaged in deposit-taking and lending, commercial banks have increasingly expanded their functions to include
securities underwriting, investment portfolio management, and facilitation of financial intermediation between investors
and issuers.
Using a mixed-method research approach that combines empirical data analysis, cross-country comparisons, and trend
evaluation for the period 2015–2022, the study identifies a strong positive correlation between the scale and efficiency
of the banking sector and key indicators of capital market development. These indicators include market capitalization,
the volume of initial public offerings (IPOs), and corporate bond issuance. Countries with well-capitalized and diversified
banking systems demonstrate higher investor confidence, stronger capital market activity, and more stable access to
financing for the private sector.
Furthermore, the study highlights the role of regulatory frameworks, technological innovation, and institutional capacity in
enhancing the ability of commercial banks to support capital market development. The findings offer practical implications
for financial regulators, policymakers, and development strategists seeking to strengthen financial systems through closer
integration of banking institutions and capital market infrastructure.
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