Why we Study Financial Markets

Name: Bilal Khan

Subject: FIM
Roll No: 15
What is Financial Institutions:-
 Financial Institutions, Otherwise Known As Banking Institutions.
 A Financial Institution Is A Company Engaged In The Business Of
Dealing With Financial And Monetary Transactions Such As
Deposits, Loans, Investments currency exchange.
 Broadly speaking there are three types of financial institutions
 Depository institutions – deposit taking institutions that accept
and manage deposits and make loans, including banks,, building
societies, credit union, trust companies, and mortgage loan
companies.
 Contractual institutions – insurance companies and pension funds.
 Investment institutions – investment banks, underwriters,
brokerage firms.
Why Study Financial Institutions?
We will also spend considerable time discussing financial
institutions—the corporations, organizations, and networks that
operate the so-called “marketplaces.” These institutions play a
crucial role in improving the efficiency of the economy. We will
look at:

1. Central Banks and the Conduct of

Monetary Policy
 The role of the Fed and foreign counterparts

2. Structure of the Financial System

 Helps get funds from savers to investors
Why Study Financial Institutions?

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Pearson
2009
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3. Financial Innovation
 Focusing on the improvements in technology and
its impact on how financial products are delivered

4. Managing Risk in Financial Institutions

 Focusing on risk management in the
financial institution.
Applied Managerial Perspective

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Hall. All
Prentice
Pearson
2009
Copyright ©
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 Financial institutions are among the largest employers in
the U.S. and often pay
high salaries.
 Knowing how financial institutions are managed may
help you better deal
with them.