Previous studies in the empirical growth literature find a strong positive relationship between financial development and economic growth. This paper argues that the strength of the finance-growth relationship will vary with the degree of inequality in a country. In countries with a highly unequal distribution of resources, financial development may have a weaker impact on economic growth. With a highly unequal initial distribution of assets, individuals that lack collateralizable assets may not gain access to funds to finance their investments in human and physical capital, lowering economic growth. Using cross-sectional data for 65 countries for the period 1960-1995, the paper finds although greater financial development leads to faster economic growth, this positive effect significantly weakens in economies where inequality is high.