• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Indian financial system
 

Indian financial system

on

  • 5,042 views

 

Statistics

Views

Total Views
5,042
Views on SlideShare
5,042
Embed Views
0

Actions

Likes
1
Downloads
192
Comments
1

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

11 of 1 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • It's a really mind blowing presentation. It gives a comprehensive overview of entire Indian Financial System. For beginners, it is the BEST one to start up to study. I have not seen the kind of detailed chart anywhere till the date.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Indian financial system Indian financial system Presentation Transcript

    • The Indian Financial Copyright© 2008 Dorling Kindersley India Pvt. Ltd System Markets, Institutions and Services The Indian Financial System, 2e -- Pathak
    • Copyright© 2008 Dorling Kindersley India Pvt. Ltd 1Financial System: An Introduction The Indian Financial System, 2e -- Pathak
    • The Indian Financial System Copyright© 2008 Dorling Kindersley India Pvt. Ltd The Indian Financial System, 2e -- Pathak
    • Chapter Objectives Copyright© 2008 Dorling Kindersley India Pvt. LtdTo understand the meaning of financial system components of the financial system functions of the financial system key elements of the financial system key elements of a well functioning financial system bank-based and market-based financial systems nature and role of financial institutions and markets link between money market and capital market link between primary market and secondary The Indian Financial System, 2e -- Pathak market
    • Meaning of the Financial System Copyright© 2008 Dorling Kindersley India Pvt. Ltd A set of sub systems of financialinstitutions, markets, instruments andservices Intermediates with the flow of fundsbetween savers and borrowers. Facilitates transfer and allocation of scarce resources efficiently and effectively The Indian Financial System, 2e -- Pathak
    • Types of Financial System Copyright© 2008 Dorling Kindersley India Pvt. Ltd Formal financial system – organized,institutional and regulated Informal financial system Advantages Low transaction costs Minimum default risk Transparency of procedures Disadvantages Wide range of interest rates Higher rates of interest Unregulated The Indian Financial System, 2e -- Pathak
    • Components of the FinancialSystem Copyright© 2008 Dorling Kindersley India Pvt. Ltd Financial Institutions Financial Markets Financial Instruments Financial Services The Indian Financial System, 2e -- Pathak
    • Types of Financial Institutions Copyright© 2008 Dorling Kindersley India Pvt. Ltd Banking: creators and purveyors of credit. Types Commercial Banks Cooperative Banks Non-banking: purveyors of credit Types Developmental financialinstitutions Mutual funds Insurance companies NBFCs The Indian Financial System, 2e -- Pathak
    • Functions of FinancialInstitutions Copyright© 2008 Dorling Kindersley India Pvt. LtdProvide three transformation services Liability, asset and size transformation Maturity transformation Risk transformation The Indian Financial System, 2e -- Pathak
    • Financial Markets Copyright© 2008 Dorling Kindersley India Pvt. LtdTypes Money Market – A market for short-term debt instruments Capital Market – A market for long-term equityand debt instrumentsSegments Primary Market – A market for new issues Secondary Market – A market for tradingoutstanding issues The Indian Financial System, 2e -- Pathak
    • Link Between Primary and Secondary Capital Market Copyright© 2008 Dorling Kindersley India Pvt. Ltd A buoyant secondary market isindispensable for the presence of avibrant primary market. The secondary market provides a basis forthe determination of prices of new issues. Depth of the secondary market depends onthe primary market. Bunching of new issues affects prices in the secondary market. The Indian Financial System, 2e -- Pathak
    • Financial Instruments Copyright© 2008 Dorling Kindersley India Pvt. LtdTypes Primary SecondaryDistinct Features Marketable Tradable Tailor-made The Indian Financial System, 2e -- Pathak
    • Financial Services Copyright© 2008 Dorling Kindersley India Pvt. LtdMajor CategoriesFunds intermediationPayments mechanismProvision of liquidityRisk managementFinancial engineering The Indian Financial System, 2e -- Pathak
    • Functions of Financial System Copyright© 2008 Dorling Kindersley India Pvt. LtdMobilise and allocate savingsMonitor corporate performanceProvide payment and settlement systemsOptimum allocation of risk bearing andreductionDisseminate prize related informationOffer portfolio adjustment facilityLower the cost of transactionsPromote the process of financial deepeningand broadening The Indian Financial System, 2e -- Pathak
    • Key Elements of a Well- functioning Financial System Copyright© 2008 Dorling Kindersley India Pvt. LtdA strong legal and regulatoryenvironmentStable moneySound public finances and public debtmanagementA central bankSound banking systemInformation systemWell-functioning securities market The Indian Financial System, 2e -- Pathak
    • Financial System Designs Copyright© 2008 Dorling Kindersley India Pvt. LtdTypesBank-basedMarket-based The Indian Financial System, 2e -- Pathak
    • Market-based Financial SystemAdvantages Copyright© 2008 Dorling Kindersley India Pvt. LtdProvide attractive terms to both investorsand borrowersFacilitate diversificationAllow risk sharingAllow financing of new technologiesDrawbacksProne to instabilityExposure to market riskFree-rider problem The Indian Financial System, 2e -- Pathak
    • Bank-based Financial System Copyright© 2008 Dorling Kindersley India Pvt. LtdAdvantagesClose relationships with partiesProvide tailor-made contractsEfficient inter-temporal risk sharingNo free-rider problemDrawbacksRetards innovation and growthImpedes competition The Indian Financial System, 2e -- Pathak
    • Functions of Financial Markets Copyright© 2008 Dorling Kindersley India Pvt. LtdEnabling economic units to exercise theirtime preferenceSeparation, distribution, diversification andreduction of riskEfficient payment mechanismProviding informationEnhancing liquidityProviding portfolio management services The Indian Financial System, 2e -- Pathak