The first comment might be: What is real growth when we talking about growth and the financial sector.

Mr. Poullain (former chief of WestLB bank) said there is a difference of "economic surplus delivered to the GDP from f.e. Daimler AG or Deutsche Bank AG" If both companies earn 5 Mrd. Euro in a year - the first 5 Mrd. Euro are coming from "real products" ... the second one is coming from, well, something different.

But both is accounted in Euro - so there is no possibility of naming this diefference unless you start measuring differently.

I work on the question of real measuring of economics and this includes growth as well.

I did not see very much change in the real physical world when you have the financial sector moving some papers over the desk.

Any financial benefit calculated out of this paper moving is - well - still virtual and has to be followed by a real world economic answer in physical characteristics.

Or in other words: I do not see that the financial sector itself can be a real part of any kind of growth. It is a service for helping the creation and the distribution of real world physical common and capital goods and services - and nothing more.

This can not be seen as long the economic theory does account everything in a unit without a proper real world linked definition, in a unit called money.

I work on the question of real world linked definition of economics. I am deeply sure that the financial sector can move money - but cannot produce any kind of common or capital goods. The money is only changing the owner of all kind of stuff - it has to be created elsewhere from banks.

I enclose the link to my paper here for saying that energy has to be used as the numéraire for economics. This would result in a situation where banks are no longer part of the GDP-Accounting since the banks are not at all create physical parts of the GDP.

Conference Paper Energy as the Numéraire of any Given Economy

I would like recommend you the last Shiller's book, Finance and the good society: http://press.princeton.edu/titles/9652.html

There are not magic prescriptions there, but many suggestions.

Thanks. Banks play intermediary role n inclusive is also a task of the government. Government NGOs and many other actors are being involved . Moreover, finance is only component offered by banks where as skill and empowerment, job opportunity and business prospects are also needed for inclusiveness. Finding a close relation of financial sector for inclusiveness in what I m looking for. Thanks again for the link.

Dear Binod the financial sector influences growth, because the financial system channelizes scarce savings of the society towards potentially productive and intellectual and physical investment, it is the return on these investments that increases the real per capita income and the material standards of living in a society. The financial measures that are needed to promote inclusive growth is liberalization of financial markets especially in emerging economies, to market forces whereby risk can be priced accurately by informed market participants, and at the same time investors needs to be feel secure about their investments, and that the state cannot expropriate their savings (Capital controls, currency devaluation etc.). Regulators can help in engendering inclusive growth, by understanding the financing needs of the people who are at their bare minimum subsistence level, and allow private enterprises to provide products and services that suits their financing needs, for instance Micro Finance, and other innovative solutions that have been developed specifically for the emerging world. But in order to achieve this it is quint essential that the regulator namely the central bank in the respective economy has credibility and can take decisive action when needed.