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The Financial System is a network of various institutions.

It is an important
component of the economy because it provides funds to consumers, producers and
traders.
The Elements of the Financial System are:
o

Financial Claims

Financial Institutions

Financial Markets

Government Agencies

Law and Policies

The Functions of Financial Institutions are:


o

Investigation and Credit Analysis

Matching Demand and Supply of Funds

Provision for Liquidity

Financial reforms were introduced to fit the changing needs of the financial system.
However, many of these reforms were recommended by IMF(International Monetary
Fund).
Branches and offices of the largest transactional banks to their business in the
Philippines. Even WORLD BANK, INTERNATIONAL MONETARY FUND and ASIAN
DEVELOPMENT BANK have great influence in our Financial System as well as the
national economy.
The job of the Central Bank should not only achieve monetary stability. In a less
developed country like Philippines, the Central Bank should use its resources more
towards the upliftment of the standard of living of the poor. Economic Growth with
social justice must be the fundamental program of any Central Bank in a poor
society.