1.1-Finance-and-Financial-sector.pptx - Trade Finance Financial Markets Role of Banks in Financial Sector Agenda In this session you will learn about

1.1-Finance-and-Financial-sector.pptx - Trade Finance...

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Trade Finance Financial Markets & Role of Banks in Financial Sector
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Agenda In this session, you will learn about: Financial System Constituents of Financial System Role of Commercial banks in economic development
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Financial System
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What is a Financial System? It is an organized and regulated structure where exchange of funds take place between the lenders and borrowers. What is a financial system? Q
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Components of a Financial System A Financial System is a system that brings together Financial Participants, Markets, Products, and Services. PARTICIPANTS MARKETS PRODUCTS SERVICES FINANCIAL SYSTEM
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Goal of Financial System GOAL The primary goal of a financial system is accelerated growth of an economy .
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Objectives of Financial System Saving Mobilization National Growth Investments
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Prices in a Financial Market MARKET DEMAND MARKET SUPPLY Prices External Socio- Political Factors
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Functions of Financial System Functions of a Financial System Facilitate the flow of funds to finance investments Play the role of intermediaries to determine the flow of funds Monitor and regulate the participants in the financial system
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How Financial System Works? Borrowers Spenders Households Business firms Governments Foreigners Borrowers Spenders Households Business firms Governments Foreigners Financial markets Indirect Finance Indirect Finance Direct Finance Direct Finance Funds Funds Funds Financial Intermediaries Financial Intermediaries Lenders Savers Households Business Governments Foreigners Funds Funds Funds Funds
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Financial System Structure of the Modern Financial System Financial Market Financial Instruments Financial Participants Financial Regulator Financial Services
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Participants of the Financial System ONES WITH SURPLUS FUNDS ONES WITH DEFICIT FUNDS Invest in assets to gain more profit Sell assets to get financing Sell Side Buy Side Financial System Financial System
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Financial Market A market where financial instruments are traded in order to raise capital.
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What is Financial Market? A market where investors and borrowers can trade in financial securities, commodities and other financial instruments at prices that reflect the market demand and supply.
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  • Winter '19
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