Does finance exacerbate income inequality? Is finance and financial development actually good for growth? These are just a few of the questions for which researchers sought answers.
Many consider financial development to be less positive for the accumulation of capital than it was in the past. This presents a need to redefine the role of finance and financial innovation for the allocation of resources. An expansion of the financial system has brought with it the perception of greater instability and an increase in risk. In turn, this poses finance as dangerous and a hindrance of growth.
Further details: How finance relates to stability and development