FINANCIAL SERVICES

Art and Science of managing money Concerned with resource - acquisition - allocation, - investment - management

MANAGEMENT


SERVICES

Budgeting Financial forecasting

Design & Delivery of Advice Products




Cash management Credit administration Investment analysis Funds management



Depositors

Financial System
p r o v i d e s

Investors

Regular Smooth Efficient Cost effective

Provides link between depositors and investors

Efficient allocation of financial resources for socially desirable and economically productive purpose Facilitates expansion of financial markets over space and time

Financial System Institutions Markets Instruments Services

Savings mobilizers Participants Dealers Generators

Financial Institutions

Regulatory

Intermediaries

Non intermediaries

Banking

Non Banking

ASSET MANAGEMENT CO


LIABILITY MANAGEMENT CO

Mutual Funds Merchant Bankers Portfolio Managers Leasing Companies

Bill discounting Houses

Facilitate buying and selling of Securities Assets Services Financial claims

Fu ds/ avi gs urplus u its

transfer

I vest e ts Deficit U its

-House holds - Corporate

-Corporate -Gover e t

Financial Markets - Types

Organized > Rules & regulations > Institutionalization > Instrumentalization

Unorganized > No regulations > Limited supply of instruments > Non Standardization of instruments

Financial Market Money Market Capital Market

MONEY MARKET

CAPITAL MARKET

T Bills Certificate of Deposits Commercial Papers

Stocks Govt Bonds

Pri ar Market eco dar Market

Periodical payments

I terest Divide ds Pri cipal Bo us

         

Liquidity Collateral Value Marketability Maturity Period Transaction Cost Risk Option Provisions Tax Status Returns Price Fluctuations

OWNERSHIP

CREDITOR SHIP

Debentures Deposit certificates T Bills Certificate of Deposits Commercial Papers Bonds

Equity Shares

Mutual funds Insurance Merchant banking Venture capital Leasing Bill discounting Services from banks - Credit / Debit Cards - Consumer Finance

Objectives Fund raising Funds deployment Specialized services Regulation Economic growth

LENDER

Fi a cial I stitutio s


Fi a cial arkets

Borrowers


I dividuals Co pa ies Ce tral Govt Public Corp

Ba ks  tock I sura ce Co excha ge Mutual fu ds Mo e arket Pe sio Bo d fu ds Co pa ies arket


I dividuals