Open Transparent Financial Information and Restore Confidence in Economists Urge
During the last century, transparent financial is the best solution to advance the global economy, but lately, these systems suffered a setback. Source of economic crisis and the malaise was not only from greed but from a lack of information. This is according to Peruvian economist Hernando de Soto. As reported by Business Week recently, during the last century the world has adopted a variety of standards and documents that deal with all sorts of finance, ranging from the making of contracts, financial reports and the applicants who entrust to financial transparency.
De Soto has another opinion that financial transparency has been declining in recent years, due to the existence of “shadow market” that has grown to large proportions. Things have been hidden from public view financial transactions such as derivatives, interest rate swaps, asset-backed securities and other hidden mechanisms that troubling.
“In the U.S., trust between banks and subprime mortgage holders have been divided, even between the agent and the confiscation of the court; between banks and their investors and other examples. in essence, loans (derived from the Latin word meaning ‘belief’) continues to flow, but results examination showed that non-government credit has contracted. since 2007 personal loans has decreased to 21 percent, during this last year owing to the small number also decreased more than 6 percent, while loans to large businesses while loans to large enterprises are measured in a commercial credit has decreased almost 9 percent or more than $ 1 million, which is measured in commercial loans over $ 1 million, down nearly 9 percent. “