Financial System
Financial System
The financial system—the collection of markets, institutions, laws, regulations, and techniques through which bonds, stocks, and other securities are traded, interest rates are determined, and financial services are produced and delivered around the world. The financial system is one of the most important creations of modern society. Its primary task is to move scarce loanable funds from those who save to those who borrow to buy goods and services and to make investments in new equipment and facilities so that the global economy can grow and increase the standard of living enjoyed by its citizens. Without the global financial system and the loanable funds it supplies, each of us would lead a much less enjoyable existence.
Financial system produces and distributes financial services to the public. Among its most important services is a supply of credit which allows businesses, households, and governments to invest and acquire assets they need for daily economic activity. The financial system of money and capital markets determines both the amount and cost of credit available. In turn, the supply and cost of credit affect the health and growth of the global economy and our own economic welfare.
A deep and efficient financial system can robustly contribute to sustained economic growth and lower poverty. The role of financial system is considered to be the key to economic growth.
A well-developed financial system promotes investment by identifying and financing lucrative business opportunities, mobilizing savings, efficiently allocating resources, helping diversify risks and facilitating the exchange of goods and services. The existence of banks and other non-bank financial institutions in a formal and organized way is collectively known as the financial system of a country. An efficient financial system is one of the foundations for building sustained economic growth. At its best finance works quietly in the background, but when things go
The financial system—the collection of markets, institutions, laws, regulations, and techniques through which bonds, stocks, and other securities are traded, interest rates are determined, and financial services are produced and delivered around the world. The financial system is one of the most important creations of modern society. Its primary task is to move scarce loanable funds from those who save to those who borrow to buy goods and services and to make investments in new equipment and facilities so that the global economy can grow and increase the standard of living enjoyed by its citizens. Without the global financial system and the loanable funds it supplies, each of us would lead a much less enjoyable existence.
Financial system produces and distributes financial services to the public. Among its most important services is a supply of credit which allows businesses, households, and governments to invest and acquire assets they need for daily economic activity. The financial system of money and capital markets determines both the amount and cost of credit available. In turn, the supply and cost of credit affect the health and growth of the global economy and our own economic welfare.
A deep and efficient financial system can robustly contribute to sustained economic growth and lower poverty. The role of financial system is considered to be the key to economic growth.
A well-developed financial system promotes investment by identifying and financing lucrative business opportunities, mobilizing savings, efficiently allocating resources, helping diversify risks and facilitating the exchange of goods and services. The existence of banks and other non-bank financial institutions in a formal and organized way is collectively known as the financial system of a country. An efficient financial system is one of the foundations for building sustained economic growth. At its best finance works quietly in the background, but when things go