The government must, therefore, introduce a sovereign bank that will shoulder the role of credit creation from commercial banks and ensure all lending contributes to the real economy.” Based on the statement above, it shows that financial system is important in  balances the total financial assets to total liabilities. Explain.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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"The government must, therefore, introduce a sovereign bank that will shoulder the role of credit creation from commercial banks and ensure all lending contributes to the real economy.”


Based on the statement above, it shows that financial system is important in 
balances the total financial assets to total liabilities. Explain.

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