1. The literature frequently mentions further functions of the banking system such as exercising corporate control or risk management (see for example Levine (1997), p. 691). These services of the banking system however have to be seen in connection to the allocation function and are therefore not explicitly discussed.
2. See Allen and Gale (2000), p. 3; Jaffe and Levonian (2001), p. 163, Lane (1994), p. 233; Megginson (2005), p. 1932; Quispe-Agnoli and McQuerry (2001), p. 2; Shirai (2002c), p. 4; World Bank (2001), p. 313. Theoretically, both banks and securities markets can provide the mobilization and allocation function. In the case of transition and developing countries, however, the banking system will play the dominant role because capital markets lack sufficient depth and banks provide better protection of small investors. See Berglof and Bolton (2002), p. 92; Lane (1994), p. 233; Quispe-Agnoli and McQuerry (2001), p. 2.
3. See, for example, the studies by de Gregorio and Guidotti (1995), King and Levine (1993), Levine (1997) or Wachtel (2001) that do not focus on the effect of the payment system.
4. Total domestic savings in a closed economy is the sum of the savings from households, enterprises and the state. For the mobilization of resources, savings from households are the most relevant, since in most cases the state produces negative savings (i.e. budget deficits) and enterprises often use their savings (i.e. retained earnings) as a source of internal financing. See Schmidt-Hebbel and Serven (1997), p. 56; World Bank (1989), p. 28f.
5. These functions can in theory also be performed by the informal financial sector. However, the informal sector lacks the legal enforcement mechanisms of the formal banking sector, and so a close bond between borrower and lender is necessary. This in turn restricts the reach and reduces the overall economic benefits of the informal sector. See Krahnen and Schmidt (1994), pp. 36–38 for an overview of the characteristics of the informal financial sector.