Financial System

What is a financial system?

Well, it can be defined at a global, regional or firm specific level.

But generally, it is a system that covers financial transactions and the exchange of currency between investors, lenders and borrowers. In short, a system that tracks financial activity.

The systems are operated by financial institutions and are strictly regulated as they directly influence financial markets. Market stability through such regulation plays a crucial role in the protection of consumers’ financial assets.

A firm’s financial system is based on a set of implemented procedures that track the financial activities of the company, including accounting measures, revenue and expense schedules, wages and balance sheet verification.

Global Financial System

The global financial system is essentially a broader regional system that encompasses all financial institutions, borrowers and lenders within the worldwide economy. This includes the International Monetary Fund, central banks, World Bank and major banks.

All systems are made of intricate and complex models and compiled with financial services, institutions and markets that link depositors with investors.

Financial Markets

Another component of financial systems are markets that trade in commodities, securities and other products that are traded according to general supply and demand.

Financial markets include primary markets, which provide venues for buyers and sellers to exchange bonds, and secondary markets, which provide a venue for investors and traders to purchase instruments that have been bought previously.

Read on below for the latest news regarding financial systems, both domestically and internationally.

Read more

Are You a Victim or a Victor?

Our GDP numbers are yet another example of ‘fake news’. All that ‘so-called’ economic growth is nothing more than a reflection of our nation’s willingness to go deeper into debt.

The Real Estate Bubble

Rents are increasing. Mortgage rates are also on the rise. People are spending almost their entire paychecks on a place to live. It’s completely untenable.

Why All This Debt is a Problem

Income growth has been stalling in developed countries in recent years. Meanwhile long-term low interest rates have meant that we have been accumulating more debt. World debt is at record highs…and it is still increasing…

What is a Market Maker to Do?

One of the beauty of options is their flexibility. You can apply numerous different strategies to almost any market conditions. Some strategies aim purely to profit from a price move in the underlying shares. Others…

Death of a Dollar

There’s no question who Donald Trump’s really got in his sights. China. In his eyes, the US has got the raw end of the deal from China for the last decade. China’s prosperity has been…

A Market Under Fire

Guess who the second biggest exporter of oil in the world today is? Russia. This is one reason for Trump’s move toward Russia and away from China. In Trump’s mind, one has something Trump wants,…

Fragile and Under Threat

The IMF noted there are worries about higher oil prices. There is turmoil in many of the oil exporting countries, like Venezuela, Libya and Iran. The US has withdrawn this year from the Iranian nuclear…

Australian Banks Have a Problem

Higher mortgage rates will mean that households face higher mortgage costs, which could decrease savings growth even more. Higher rates with no wage growth could also mean that borrowers applying for new loans face higher…

Markets & Money