financial system

626 views

Published on

this presentation is on financial system,,,,check it out,,,it may be helpful to you,,

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
626
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
29
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

financial system

  1. 1. FINANCIALSYSTEM BHOOMI LODAYA MBA – II [FINANCE]
  2. 2. Introduction An institutional framework existing in a country to enable financial transactions. Three main parts  Financial assets (loans, deposits, bonds, equities, etc.)  Financial institutions (banks, mutual funds, insurance companies, etc.)  Financial markets (money market, capital market, forex market, etc.) Regulation is another aspect of the financial system (RBI, SEBI, IRDA, FMC)
  3. 3. (Contd) Enable channelizing funds from surplus units to deficit units Instruments for savers Instruments for borrowers Businesses, governments too raise funds through issuing of bonds, Treasury bills, etc.
  4. 4. FEATURES It provides an Ideal linkage between depositors savers and Investors Therefore it encourages savings and investment. Financial system facilitates expansion of financial markets over a period of time. Financial system should promote deficient allocation of financial resources of socially desirable and economically productive purpose. Financial system influence both quality and the pace of economic development.
  5. 5. Why financial system? Financial systems help the organization to make sound decisions based on cash flow and available resources Monitoring funds, or comparing actual income and expenses versus budgeted amounts, helps managers ensure that the necessary funds are in place to complete an activity Transparency, clear planning and realistic projections contributes to the credibility of the organization.
  6. 6. (contd) Most governments require that registered, charitable organizations create accounts that track income and expenses. Establishing financial controls and clear accounting procedures help ensure that funds are used for intended purposes. Funders require reports that demonstrate that grants were used for intended purposes.
  7. 7. Financial System Non- Organized Organized Money lendersRegulators Local bankersFinancial Institutions TradersFinancial Markets LandlordsFinancial services Pawn brokers Chit Funds
  8. 8. FUNCTIONS Payment System Pooling of Funds Transfer of Resources Risk Management Price Information for Decentralized Decision Making Price Discovery Process Liquidity Fungibility

×