Capital markets are becoming more important in the Asia-Pacific region alongside traditional bank credit. To further develop these markets, countries need stable economies, strong property rights, and effective securities laws. Building advanced financial systems and promoting transparent information sharing are also crucial. Institutional investors, who invest for the long term, help stabilize local markets. Encouraging their participation in domestic markets can be done by promoting savings through pension funds and insurance companies, and by attracting foreign investors. Policymakers can also explore impact investing to fund projects with environmental and social benefits.