Financial System

Report

Financial Management

Financial System

Submitted to: Sir Saleem Altaf

Group Members:

Muhammad Bilal

Jan Sher Khan Khattak

Haris Aziz

Rahat Ali

MBA-3 (B)

Executive summary

The financial system is the system that allows the transfer of money between savers (and investors) and borrowers. A financial system can operate on a global, regional, or firm specific level. Or it comprises "a set of complex and closely interconnected financial institutions, markets, instruments, services, practices, and transactions.

Abstract

Financial system consisting of institutions and regulators that acts on the international level, as opposed to those that act on a national or regional level. The main players are the global institutions, such as International Monetary Fund and Bank for International Settlements, national agencies and government departments, e.g., central banks and finance ministries,

History

The history of financial institutions must be differentiated from economic history and history of money. In Europe, it may have started with the first commodity exchange, the Bruges Bourse in 1309 and the first financiers and banks in the 15th–17th centuries in central and western Europe. The first global financiers the Fuggers (1487) in Germany; the first stock company in England (Russia Company 1553); the first foreign exchange market (The Royal Exchange 1566, England); the first stock exchange (the Amsterdam Stock Exchange 1602).

Milestones in the history of financial institutions are the Gold Standard (1871–1932), the founding of the International Monetary Fund (IMF) and World Bank at Bretton Woods 1944, and the abandonment of fixed exchange rates in 1973.

Introduction

The financial system is 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.

Securities

A...