Banking Introduction

Objectives :

Objectives Financial System-Nature, Evolution and Structure. Functions of Financial Intermediaries. Financial Instruments. Role of Financial System in Economic Development. Indian Financial System. Indian Financial System

Financial System :

Financial System The word ‘System’ means an ordered, organized and comprehensive assemblage of facts, principles or components relating to a particular field and working for a specified purpose. A financial system is an Integral Part of a Modern Economy.

The Financial System :

The Financial System The word system in the term ‘financial system’ represents a set of closely held financial institutions, financial services and financial instruments or Claims. The financial system of a country can be defined as a set of organizations, instruments, markets, services and methods of operations, procedures that are closely interrelated with each other.

Nature and Evolution of the Financial System :

Nature and Evolution of the Financial System The basic requirements for any financial system to be efficient are; Efficient Monetary System- indicates an efficiency medium of exchange for goods and services. Facilities for the creation of the capital- to meet the demands of the economy. The capital will be necessary to undertake the production activities. The financial system helps to meet such demands by mobilizing the savings of the surplus units to the demanding units. Efficient financial markets- and methodologies, which facilitate the process of transfer of resources and the conversion of financial claims into money.

Nature and Evolution of the Financial System :

Nature and Evolution of the Financial System Complexities in the functions of the financial system, especially when the requirements of the savers and those of the borrowers did not match, created a need to enhance the financial system. The growth of an economy indicates the growth of the Financial System The evolution or the growth...