financial system
Sign in to savesystem that allows the transfer of money between savers (and investors) and borrowers
Wikidata facts
Show 1 more fact
- Commons category
- Financial systems
Sources (3)
via Wikidata · CC0
~5 min read
Article
A financial system is a system that allows the exchange of funds between financial market participants such as lenders, investors, and borrowers. Financial systems operate at national and global levels. Financial institutions consist of complex, closely related services, markets, and institutions intended to provide an efficient and regular linkage between investors and borrowers.
In other words, financial systems can be known wherever there exists the exchange of a financial medium (money) while there is a reallocation of funds into needy areas (financial markets, business firms, banks) to utilize the potential of ideal money and place it in use to get benefits out of it. This whole mechanism is known as a financial system.