Banks will continue to play a leading role in promoting the growth of enterprises, especially the SMEs, although over time stock markets will become increasingly important in most developing and transition economies. Financial system restructuring, as a means of correcting broad policy-induced distortions, is an important ingredient of the symbiotic growth of the financial and corporate sectors. To sustain the momentum for growth, mechanisms for financial sector regulation and supervision have to be in place. Pending the development of domestic capital markets or access to international capital markets, development banking will remain important for funding long-term investment and infrastructural projects. Developing countries will continue to use development banks to tap into international capital flows by offering co-financing prior to the development of fully fledged capital markets. The development banks (or some other agency) should also develop loan guarantee schemes and provide training and other services to the SME sector. In other words, development banks should focus on addressing market failures. As the market failure in the provision of long-term capital to larger enterprises declines in importance (as their access to capital markets increases), the development (and commercial) banks should increasingly focus on meeting the needs of SMEs (Table 7.3). For it is SMEs that will be the engine of future development.