Articles on Financial Markets and Institutions

This article explains the different types of parties in the financial system. It provides a basic introduction as to the motives of the participants as well as the overall behavior of the financial system as a whole.

This article lists the major functions which are performed by the financial system. It also provides details about why these functions are important to the economy.

This article explains how financial systems aid in the economic development of the country. The contribution of the financial system to the different parts of the economy have been explained in this article.

This article explains the role which the government plays in the development of the financial systems of any nation. The important steps which need to be taken by any government have been listed in this article.

This article explains the different types of financial systems in the market. It explains how different countries in the world focus on different institutions and how it impacts their growth and development in the long run.

This article provides information about the fund flows in an economy. It explains how this information can be used to conduct an analysis that provides more details about the functioning of the economy as a whole.

This article explains the benefits of bank dominated financial systems. The benefits have been listed and explained in detail. Some of the shortcomings of the market-based system have also been explained in the article.

This article explains why the design of central banks matter. It explains the various functions performed by the central bank. It also explains how different designs enable central banks to focus on different tasks. Lastly, it lists the flaws of privately owned as well as a government-owned central bank.

This article explains why banks have to face more regulation as compared to other industries. It also lists some of the common regulations which are faced by banks across the world.

This article explains the concept of the primary market and the secondary market. It explains how both types of markets are essential for efficient and effective trading of securities. Lastly, it also explains how the secondary market enables the existence of the primary market.

This article explains the definitions of capital markets and money markets. It shows the difference between the two by highlighting the differences. Lastly, it also explains why both types of markets are complementary and, therefore, essential for the economy.

This article explains how different market makers function. The functions performed by brokers, as well as dealers, have been explained in detail. Also, the differences between brokers and dealers have been highlighted in this article.

This article explains the concept of over the counter markets. It explains how over the counter markets are different from exchange regulated markets. Lastly, the limitations of over the counter market have also been detailed in this article.

This article explains the concept of wholesale banking. It enumerates the various services which are provided by wholesale banking. It also explains why wholesale banking is important for the smooth functioning of the retail market.

This article explains how the derivatives markets function. It also explains why derivatives markets are so important as well as the defining features of the derivatives markets.

This article explains the concept of exchange rate regimes. It explains why exchange rate regimes are important in a financial system. It also explains the different types of exchange rate regimes that are commonly followed in the world.

This article explains the concept of pension plans. It also explains the different types of pension plans and how these plans differ from mutual funds and other investment vehicles.

This article explains what depositories are. It also explains how depositories used to function with an inefficient pen and paper-based system in the past. It explains how this system has now been digitized and lists the various participants which function in this new system.

This article lists the various functions which are performed by depositories. It also explains the various benefits of having a depository in the financial system.

This article elaborates on the different types of mechanisms that can be used to raise funds on the primary market. It compares the fix price process with the book building process in order to find the pros and cons of both methods.

This article explains the concept of reference interest rates. It defines what reference rates are and also explains its important features. Finally, it provides examples of some of the widely used reference interest rates across the globe.

This article explains how stock markets function. The various steps involved in the functioning of the stock market have been explained in detail. The role of various intermediaries has also been explained.

This article explains the Based Accord in detail. It provides information about the Basel 3 rules and how these rules are instrumental in maintaining the stability of the financial system as a whole.

This article introduces the reader to the concept of the clearinghouse. It explains the need for clearing houses as well as the various functions performed by them. The role played by clearing houses in facilitating payments has been explained in this article.

This article explains the concept of automated clearinghouse (ACH). It also provides details about the various types of transactions processed through the ACH as well as the different participants which form a part of the process.

This article provides basic information about the Fed Wire system. It explains how the Fed wire system is different from the ACH system. It also explains the different services provided by the Fed Wire system and how they complete the financial system.

This article explains the concept of the SWIFT network. It explains how the SWIFT network is not a payment network but actually an information network. It also explains how the SWIFT network functions and lists the challenges faced by users of the SWIFT network.

This article explains the concept of stress testing. It also explains how the principle of stress testing can be applied to the entire economy as a whole.

This article explains the concept of quasi-government entities. It also explains the advantages and disadvantages of using quasi-government entities.

This article explains why housing finance companies exist. The purpose of housing finance companies, as well as the special tasks performed by these companies, have been explained in detail in this article.

This article elaborates on the concept of market data. It also explains how this data is collected and disseminated. The various uses of market data have also been explained in this article.

This article explains the concept of insider trading. It also explains how insider trading has a negative impact on the financial system as a whole. Lastly, it lists the measures which are taken by the government in order to deter individuals and organizations from indulging in insider trading.