Through a combination of external forces and its inner dynamics financial capitalism has been transformed over the last 250 years. Central to financial capitalism is financial innovation. It is through innovation that financial capitalism responds to external challenges and opportunities while generating its inner dynamics. The most important organizational innovation in finance was the bank. A bank is a financial intermediary whereas a moneylender is a capitalist. Almost from the inception of financial innovation in products, markets, and organization, attempts were made to minimize the risks that they posed for all users. Regulatory innovation was also found in financial markets, though much again was left to the reputation of the participants. Evidence certainly exists to suggest there is a strong correlation between a country's per capita income and financial sector development, judged by such measures as bank deposits and holding of securities.