Financial System

In finance, the financial system is the system that allows the transfer of money between savers (and investors) and borrowers. A financial system can operate on a global, regional or firm specific level. Gurusamy, writing in Financial Services and Systems has described it as comprising "a set of complex and closely interconnected financial institutions, markets, instruments, services, practices, and transactions."

According to Franklin Allen and Douglas Gale in Comparing Financial Systems:

"Financial systems are crucial to the allocation of resources in a modern economy. They channel household savings to the corporate sector and allocate investment funds among firms; they allow intertemporal smoothing of consumption by households and expenditures by firms; and they enable households and firms to share risks. These functions are common to the financial systems of most developed economies. Yet the form of these financial systems varies widely."

Other articles related to "financial, financial system, system":

Anna Schwartz - Financial Regulation
... She changed her opinion regarding financial regulation ... been and are concerned with the stability of the financial system ... – emphasized that price level stability is essential for financial system stability ...
Global Financial System
... The global financial system (GFS) is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level ...
Late-2000s Financial Crisis - Background
... the US, fueled by large inflows of foreign funds after the Russian debt crisis and Asian financial crisis of the 1997–1998 period, led to a housing construction boom and facilitated debt-fi ... As part of the housing and credit booms, the number of financial agreements called mortgage-backed securities (MBS) and collateralized debt obligations (CDO), which derived ... Such financial innovation enabled institutions and investors around the world to invest in the U.S ...
Chinese Financial System - Economic Reform
... The ongoing development of China's financial system will play a critical role in the country’s effort to narrow social disparities and pursue balanced ... Reforming the financial system would increase the rate of GDP growth and help spread China’s new wealth more evenly ... that has evolved from a socialist, centrally planned economy to a socialist market economic system, or a "socialist market economy with Chinese ...

Famous quotes containing the words system and/or financial:

    I am fearful that the paper system ... will ruin the state. Its demoralizing effects are already seen and spoken of everywhere ... I therefore protest against receiving any of that trash.
    Andrew Jackson (1767–1845)

    In full view of his television audience, he preached a new religion—or a new form of Christianity—based on faith in financial miracles and in a Heaven here on earth with a water slide and luxury hotels. It was a religion of celebrity and showmanship and fun, which made a mockery of all puritanical standards and all canons of good taste. Its standard was excess, and its doctrines were tolerance and freedom from accountability.
    New Yorker (April 23, 1990)