Financial
sector provides with the framework for managing of cash flow situation of
different economic units. In simple words, the income and expenditure pattern
of individual economic units may not match at every point of time; it varies
from individuals to corporate and to government agencies, etc
The
gap building up between the poor and the richer, along with the changing
economy in such terms financial sector helps bridge up such gaps. In the
process, the sector reallocates financial resources between deficit and surplus
entities.
Financial
sector forms the backbone of the economy hence it becomes essential to under
the
Functions and roles of financial sector:
- Financial sector facilitates and manages various types of upcoming risks and take measures accordingly to mitigate it.
- It helps to maintain balance and avoids financial fights occurred between two economic units by coming up different and innovative other options.
- For E.g.; like in case of an economic unit stated as ‘A’ that wants to utilize the additional or excessive left out amount for a short period of time whereas the economic unit ‘B’ wants to use the funds for a longer period, in such instance financial sector comes with various mechanism through which it takes certain risks and transform the short-term surplus (an amount of money) of economic unit ‘A’ to meet the long-term funding requirements of economic unit ‘B’.
- In order to attempt the above step financial sector ensures to store some amount of surplus with them at times of crisis or at times when risks lead to failure or loss.
- Financial intermediaries such as banks, monitors the need of every individual depending on their demands, these demand could either be for personal use or for professional use. Often these individuals finds it difficult to come up with an estimation of money required or needed for lending, thus the banks apprises with fund or investment decision strategized and fixed depending on the needs of the consumer and investors and then facilitates them with the appropriate service.
- Financial sector comes with schemes and investment plans for individuals, corporate, government agencies, etc, that have resulted in the development of the economy in comparison to post-Independence period.
Understanding
components of financial sector:
- Financial sector relies on three interrelated distinct components i.e.; institutions, markets and instruments.
- It includes presence of bodies such as banks, development finance institutions, non-banking financial companies, insurance institutions, stock exchanges, clearing houses, etc.
- Financial institutions cannot work in a vacuum it requires various types of markets for its operations. Financial markets include money market, debt market, foreign exchange market, securities market, derivatives market, etc.
- Financial instruments also include the most essential product money, interest rate, securities, etc. without it nothing could function.
Since
one knows that developments in the financial sector are intertwined and
interdependent with developments elsewhere in the economy, hence it becomes
constrained for an applicant to embrace his/her knowledge facilitated by best
educational institutes specialized in providing with finest educational
services.
Welingkar Institute provides with PGDM in Finance Management:
Welingkar
Institute of Management was established in the year 1977 with the aim on shaping
a new dimension to business studies. Welingkar Education believes in the
excellence of quality education and caters in relevance to the current times
and industry demands.
Financial
sector is the most important contributor to the economy of any nation. Hence
finance proves to be a highly complex and challenging field that offers a
number of job opportunities for aspiring managers. Welingkar Institute offers
PGDM in finance management program which equivalent to any best distance MBA programs in India.
Welingkar Institute in collaboration with Eins
Educations imparts the right knowledge about financial whereabouts and prepares
students for a successful global corporate world.
- It provides with a two-year comprehensive PGDM program in Finance Management.
- With a notable advantage of flexibility course which allows applicants to study according to his/her convenience.
- The program is offered at affordable fees and also provides guaranteed placement assistance to all the students.
Welingkar
Education is devoted to produce exceptional financial managers with broad based
knowledge along with analytical ability, team experience and critical
interpersonal skills acquired in this competitive field. To Enroll with Financial
Management Program at Welingkar Institute, Click Here:
http://bit.ly/1gGBPx0
http://bit.ly/1gGBPx0
No comments :
Post a Comment