OVERVIEW OF FINANCIAL SYSTEM


OVERVIEW OF FINANCIAL SYSTEM
  • Efficient financial systems are indispensable for speedy economic development. The more vibrant and efficient the financial system in a country, the greater is its efficiency of capital formation. The more diversified and broad based the institutional structure of the financial system, the more active and vibrant is the financial system. 
  • The overall macro level policies of the government, scope of services and operations of financial intermediaries, global outlook regarding the economy, diversity in investment avenues, income and saving levels of households and business and overall regulatory setup affect the process of capital formation in the country. 
  • They facilitate conversion of savings into investments by overcoming the geographical and technical limitations.

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