Financial

System
By: Santiago Chona, Daniel Ramírez, Geronimo
Ochoa and Juan Martin Goyeneche
Index

1. What is the financial system?

2. Types of financial systems
3. Advantages of the financial
system
4. Disadvantages of the financial
system
5. Percentages of people using
finacial system
What is the financial system?
The financial system is a
group of institutions, such
as banks, insurance
companies and stock
exchanges, that allow the
exchange of funds. The
financial system exists at
the corporate, regional and
global levels.
Types
Financial Institutions
They act as intermediaries
between those who have
sufficient resources and those
who request these resources.
Sub types...
institutional investors: These may be
insurance companies, investment funds
or pension funds.
Investment intermediaries: form
investment portfolios.
Deposit-taking institutions: Banks
Financial assets The financial market
These are all those instruments used Is in which is the virtual system,
by financial systems, with the purpose mechanism or place where all
of facilitating the movement of
financial assets are exchanged,
resources. They can be defined as a
and where their prices are also
means that maintains wealth for those
who have resources, and responsibility
fixed.
for all those who issue them.
For example...
Banks
Credit Institutions
It can ve in the public and private
Financial credit institutions
sector for example a saving account
Payment organizations
on a bank
Pension funds
Electronic money
organizations
 Advantages of the financial system
Links Savers and Minimizes Risk Enhance liquidity
Investors

The financial system serves as

a means of bridging the gap
between savings and
investment.

The financial system distributes funds

among a large number of peoples due to
which risk is shared by many peoples.

the financial system. It facilities free

movement of funds from households
(savers) to corporates (investors)
 Disadvantages of the financial system

Monopolistic Market High Rate of Interest Inactive Capital Market

Structure

The large structures could

lead to mismanagement or
inefficiency of funds.

Different institutions due to their

monopolistic structure in the market may
charge high or unfair interest rates.

All corporates in the world are mostly able

to acquire funds through development
banks and do not need to go to the capital
market.
Percentages of
people using
finacial system
According to the statistical image this
shows us that Colombia is a country that
has an access to a bank account or a credit
account of 26 to 50% of its population and in
the world of 25 countries six out of 27
people are excluded or do not have access
to a bank account, that is 74%, also
according to the source consulted this says
that the economy has been rising and has
tended to increase each time and close the
gap of people who do not have full access to
a bank account. Finally I want to say that
for us it is favorable to have a bank account
because Colombia in our current context
helps us a lot to better manage our money
thanks to our parents.
References
https://www.weforum.org/agenda/2016/01/what-is-the-future-of-global-finance/
https://commercemates.com/advantages-and-disadvantages-of-financial-system/
https://www.investopedia.com/terms/f/financial-system.asp
https://corporatefinanceinstitute.com/resources/wealth-management/financial-
system/

 Gracias
Una presentación de Estudio Shonos