The article explores how different financial models impact economic growth in emerging markets. It compares market-based and bank-based models to see which one is more beneficial. The research shows that both models have their strengths, with the bank-based model being better for economic development and financial growth according to neoclassical economics. However, the market-based model can also lead to economic growth through innovation and better risk assessments. The study also highlights the importance of factors that enhance these models and their contributions to financial and economic growth in emerging markets. Ultimately, developing capital markets can help stabilize underdeveloped economies with weak institutional settings and low growth.