Financial Intermediaries Paper - Essay Example

Only on StudentShare

Extract of sample
Financial Intermediaries Paper

In doing so, the financial system not only satisfies savings needs of the economy but also facilitates the accumulation of investment capital that is critical to growth and development." (J. Carmichael & M. Pomerleano, 2002).[5]
The financial intermediaries are important in regulating and distributing the financial resources in the economy. The intermediaries in general and the banks in particular, help the Federal Reserve and the State Banks of economy to regulate and manage the financial transactions and controls in the economy.
In any economy, growth is directly affected by the accumulation of input factors of production and the technical knowledge that is used to convert inputs to outputs. In the input factors, financial and capital resources are of major importance. These financial and capital factors are directly related to the financial growth of industries and the economy.
"More specifically, financial development can affect growth through three main channels: (i) it can raise the proportion of savings channeled to investment, thereby reducing the costs of financial intermediation; (ii) it may improve the allocation of resources across investment projects, thus increasing the social marginal productivity of capital; and (iii) it can influence the savings rates of households ...
Download paper


The term financial intermediary may refer to an institution, firm or individual who performs intermediation between two or more parties in a financial context.[4] "Financial intermediaries may include banks, broker-dealers, investment advisers and financial planners"[3]…
Author : emmanuelle46

Related Essays

financial analysis research paper
In the execution and development of any business, the financial planning aspect is given utmost importance. The reason for giving so much worth to this element is because of its magnitude and intensity. Positive calculations and feasibility of organizational processes on the financial basis indicate business to flourish in the future (Chandra 24). The strategic dimensional examination by the organization is carried out by financial and accounting analysts. The time frame involved in business mounting and expected returns are highlighted by the financial forecasters. The rationale of revealing...
8 pages (2008 words) Research Paper
Financial Reporting Research Paper
Depreciation is an expense charged on the asset. It does not affect cash balance in the firm. An increase in trade payables increases cash inflow. This gives a balance from operations of 1377. Interest paid and income tax paid reduces cash balance too. At the end of the day, net cash from operating activities is overstated by depreciation and profit before tax and interest. A company's performance are realistical and do not depend so much on profits earned in the period but on liquidity of cashflows...
6 pages (1506 words) Research Paper
Financial Services and Markets
No doubt MiFID has its own influence on the effectiveness of the functions of FSA in that there may be some overlapping of the initiatives as laid down by both the regulations in achieving the purposes for which they have been introduced. With this background this paper attempts to bring out a detailed report on the legal implications of MiFID on the FSA and the extent of the exposure of its authority on the activities of different organisations, which are supposed to be regulated and controlled by FSA....
8 pages (2008 words) Essay
Financial Management Research Paper
Performing profitability analysis requires an understanding of selling prices and the behavior of activity cost drivers. (Activity cost driver is often referred to as cost driver when the context is clear that we are discussing activity, rather than structural or organizational, cost drivers.) Profitability analysis is widely used in the economic evaluation of existing or proposed products or services. Typically, it is performed before decisions are finalized in the operating budget for a future period. This report shows the analysis done to find out the changes in the profit when the costs...
10 pages (2510 words) Research Paper
Financial system
Financial instruments are paper documents. Yet just as a surgeon uses instruments as financial instruments to undertake crucial exchanges of financial resources. They also can use financial instruments to help reduce the risks of financial loss....
11 pages (2761 words) Essay
Financial Crisis and Lehman Brother Collapse
To this end, the paper will critically evaluate all the factors responsible for the global financial crisis and identify whether there were factors that were only related to the financial sector or not. The paper will therefore conclude on whether the financial sector was solely responsible or not Financial Retail Products and the Profit Motive...
17 pages (4267 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!