Merchant Banking and Financial Services
Merchant Banking and Financial Services
Merchant Banking and Financial Services
FINANCIAL SERVICES
UNIT – I
FINANCIAL SYSTEM
A system that aims at establishing and providing
a regular, smooth, efficient and cost effective
linkage between depositors and investors is
known as financial system. A set of complex and
closely connected instructions, agents,
practices, markets, transactions, claims and
liabilities relating to financial aspects of an
economy may be referred to as financial system.
A well-developed financial system allows for the
transfer of resources from depositors to
investors and thus plays a crucial role in the
functioning of the economy.
Features:
Financial system provides an ideal linkage
between depositors and investors, thus
encouraging both savings and investments.
Financial system facilitates expansion of
financial markets over space and time.
Financial system promotes efficient allocation
of financial resources for socially desirable and
economically productive purposes.
Financial system influences both the quality
and the pace of economic development.
Constituents:
A financial system comprises of
1. financial institutions,
2. Financial services,
3. Financial markets and
4. Financial instruments.
1. Financial Institutions