Integrated financial market Financial integration Types of strategies Direct channel Indirect channel

1. INTEGRATION OF FINANCIAL
MARKET

2. 2
In integrated financial market,
domestic investors can buy foreign
assets and foreign investors can
buy domestic assets.

3. Financial Integration
Financial Integration is very important for growth of global
Financial market. It enables various financial market of
different countries to get connected with each other.
It brings borrowers &investors from different countries on
a common platform. Financial integration ensures:
1. Sharing of information
2. Transfer of technology
3. Assess to informational markets
4. Cross-border capital flows

4. 4

5. 5

6. The benefits of financial
integration
 Financial integration is crucial for the allocation of capital
internationally among alternative and competing
opportunities.
 Provides a discipline for firms and public entities.
 Allows for deeper and liquid markets where transaction
may take place with lower costs and in less risky manner.
 Allow for the exchange of savings between countries with
different age structure and growth speed . 6

7. Cpital market integration
 Reducing or removing barriers
 To cross- border transactions and services
 To broaden the market for long term capital beyond the limits
of domestic markets .
 Barriers included operational, policy ,legal, regulatory, as well
as physical or infrastructure impediments.