COMPARISON OF

INDIAN AND
CHINESE FINANCIAL
SYSTEM
 1. Alisa Mariam Chandyson - 2011242
Team 2. Anna Jacob - 2011243

Members 3. Sirisha Suresh - 2011263

Introduction
A 'financial system' is a mechanism that permits financial
market players such as lenders, investors, and
borrowers to exchange funds. Lenders and borrowers
can trade funds through the financial system.

A financial system is a collection of institutions which

allow the exchange of funds, such as banks, insurance
companies, and stock exchanges. The financial system
exists in the corporate, national, and global level
Indian Financial System
One of the essential parts of our country's economic development is the
Indian financial system. This system coordinates the flow of funds between
the country's citizens (household savings) and those who can intelligently
invest it for the benefit of both parties
Components of Indian Financial
System
 Reforms
Narasimham Committee report, 199
Changes to the CRR and SLR
Elimination of direct or selective credit control
Elimination of direct or selective credit control
Chinese Financial
System
The financial sector has played a vital part
in China's rise, which has expanded to
become the world's second largest
economy and is on track to overtake the
United States. For decades, China's
financial system has performed admirably
enough to support the country's
extremely rapid economic expansion.
Components of Chinese Financial
System
Reforms
The establishment of
stock exchanges at
the end of the 1980s
Special Economic
Zones (SEZs)
Intermediate control
mechanisms
Comparison between Indian &
Chinese Financial System
While the financial systems of China
and India have grown from quite
dissimilar roots, today they face many
similar problems. Both countries are
now pursuing growth strategies based
on relatively free markets, yet neither
has the financial system it needs to
sustain rapid and efficient growth in
the years ahead.
 1 2 3 4
Both countries Banking
Distorting the Similar must develop and
financial unfortunate modern financial economic
system by the consequences services to reforms
government to efficiently
achievesocial allocatecapital
ends
 Conclusion
China's banking system would be
strengthened, allowing it to undertake
additional changes in the external sector
and monetary policy.In India, the Indian
financial system has improvedand has
grown stronger after the reforms. However,
the fundamental problem for the Indian
authorities is to reducethe banking
system'sintermediation costs whileretaining
its profitability