Description
New Century Publications Financial Markets Financial Institutions and Financial Services by Lohana Sarika R Et Al
Finance is the pivot around which a modern economy revolves. It is the life blood of business enterprises. Economic development, characterized by acute specialisation and exchange, is unthinkable without well-developed financial markets, financial institutions and financial services. Financial system―consisting of financial markets, financial institutions, financial services and financial instruments―is at the heart of an economic system. A sound financial system helps to mobilize the financial surpluses of an economy and transfer them to areas of financial deficit. It is the linchpin of any development strategy. Financial system promotes savings by providing a wide variety of financial assets to the general public. Savings collected from the household sector are pooled together and allocated to various sectors of the economy for raising production levels. If the allocation of credit is judicious and socially equitable, it can help achieve the twin objectives of growth and social justice.Financial markets are a mechanism which allows people to buy and sell financial securities and other fungible items of value. Fungible means interchangeable or exchangeable items (like goods, services, currencies) in contrast to non-fungible items such as human beings. Thus, financial markets include capital market (trading in shares and bonds etc.), commodity market (trading in gold and silver etc.), foreign exchange market (trading in different currencies) and other such markets. Complex financial products, such as derivatives, have proliferated in the financial markets. These products have become highly popular with banks and financial institutions as they allow them to hedge their risks and manage their regulatory and economic capital more efficiently.Financial institutions (or financial intermediaries), which provide a meeting ground for the savers and the investors, form the core of financial sector of an economy. Through mobilisation of resources and their better allocation, financial institutions play an important role in the development process of underdeveloped countries.Financial services sector is comprised of banking, mortgages, credit cards, payment services, tax preparation and planning, accounting, and investing. It is one of the economy’s most important and influential sectors.This book, designed for students pursuing undergraduate and postgraduate courses of Indian Universities and NTA UGC-NET in economics and commerce, provides a comprehensive description of the theory and functioning of financial markets, financial institutions and financial services with reference to India.It is spread over 39 chapters which have been organized into 4 theme parts.Part I (chapters 1 to 7) is titled Financial System: An Introduction. Apart from explaining various concepts related to finance, it also provides an overview of the financial markets, financial institutions and financial services. Other topics in this part include state domination of financial sector (1947-1990); financial sector reforms since 1991; financial regulators in India; legislative and institutional measures to strengthen India’s financial sector; and various types of financial crisis. Part II (chapters 8 to 16) is titled Financial Markets. It deals with money market; government securities market; capital market, corporate debt market; foreign exchange market; and integration of financial markets.Part III (chapters 17 to 27) is titled Financial Institutions. It covers Reserve Bank of India (RBI); commercial banks; urban co-operative banks (UCBs); non-banking financial companies (NBFCs); payment banks; mutual funds; pension funds; internet banking; mobile banking; insurance organizations; and foreign banks in India.Part IV (chapters 28 to 39) is titled Financial Services. It focuses on various kinds of financial services; financial technology (FinTech) innovations and services; credit rating services; merchant banking; financial literacy and awareness; portfolio management and investment strategy; venture capital and angel investors; digitization of payment system; customer services; artificial intelligence (AI); cyber attacks and cyber security; and data protection strategy and techniques.