Financial deepening

Financial deepening is like building a tall and strong tower. Just like a tower, a strong financial system needs a foundation that is wide and deep.

Let's say you have some money, but you don't keep it under your bed. Instead, you take it to the bank, and they keep it safe for you. The bank uses that money to lend it to other people who need it. This is called financial intermediation.

Now, let's imagine that this bank has access to a lot of money. They can lend it to more people who need it, and those people use it to start businesses or buy houses. This creates more jobs and more goods and services for everyone.

If more people can access financial services like banks or credit unions, it's like adding more bricks and making the foundation of the tower wider. It creates more opportunities for people to borrow money, invest, save, and make their money grow.

And if there are many different types of financial services available, like insurance or stock markets, it's like building the tower higher. It makes it possible for people and businesses to manage their risks, make more money, and contribute to the economy.

So, financial deepening means building a strong and stable financial system that can help people and businesses grow and prosper.