Close examination of global financial systems - Essay Example

Extract of sample
Close examination of global financial systems

After bringing up the main the main topic of the essay, we see that it makes a few valid points to argue about. Whereas the function of financial systems is argued, the performance of different types of financial systems is even more greatly argues. Banks in Germany are mainly accountable for the growth of the nation, having promoted and developed its industries. To them, more than any other group may be attributed the wonderful outcomes yet realized. The essay goes deeper into the topic by bringing other examples. Pragmatic study on the relative values of bank-based as well as market-based financial systems has focused on “Germany and Japan as bank-based systems and the United States and the United Kingdom as market-based systems” (World Bank, 2012, p. 111). The essay says that theoretically, the financial services notion is completely compatible with both the bank-based as well as market-based approaches. Later, we are given pieces of advice, such as: when trying to control the design of a financial system, the study recommends that supervisory bodies should not intently concentrate on banks and markets independently, but rather see them as essential components of a co-developing system. In conclusion, we see that when trying to control the design of a financial system, the study recommends that supervisory bodies should not intently concentrate on banks and markets independently, but rather see them as essential components of a co-developing system. ...
Download paper

Summary

The essay clearly brings up the main subject, which is that the financial systems of the main developed economies vary significantly. The particular variations in the national structure allow the two different financial systems to act in a different manner. …
Author : heathcotemarcel
Download 1

Related Essays

Ff options can only be priced because they can be replicated, why do we need them?
Although derivatives are technically conspicuous reason being they can undergo replication using basic financial instruments, they are still the tools that provide those who participate in the market to full of risk to manage the particular risks. Nature of options dynamic replication Dynamic hedging of options is never conducted even with the market makers(Lussier & PareI, 2004). In nature, options are hard to deal with due to the technicality of the language used to describe the tools. The difference between dynamic and static hedging is small since hedging is only realized on minor...
4 pages (1004 words) Assignment
Financial systems around the globe
Nowadays, there is a considerable change in these methods as the concepts of transaction cost and use of full information are removed and intimidation has increased in today’s financial market. It’s difficult to bring these changes with the traditional method of financing growth. There is also a tendency in the direction of cross border merger and acquisitions among great financial service firms in diverse nations. These cross border merger and acquisitions frequently engage big universal sort of institutions that give numerous types of financial services to multiple nations. There are two...
6 pages (1506 words) Essay
Understanding the work of financial markets
The essay clearly discusses the role of the banks in bank-based system and market-based systems and the informational problems. Market based systems eliminate informational problems. You find that most information is publicly displayed in the market for public listed companies. Then the essay talks about the possible solution. The solution to this problem is to hire a single monitor to monitor the actions of the borrowers. A single monitor cannot solve this problem alone thus he uses a model of delegated monitoring called diamond model (Diamond 1996 pg 41). Then, risk sharing is discussed....
10 pages (2510 words) Essay
Have we learned any lessons from the financial crisis of 2007-8.
When the criticality of the matter dawned on the American society, it was difficult to accept the dire consequences of the downfall. Organizations deemed stable enough to survive any surging economic pressure proved to be at the verge of collapse in the 2008 scenario. President Obama had to help America resolve the issue, and settling it needed firm decisions taken in good time to save the average American from the consequences resulting from the crisis. This is how the Dodd-Frank law surfaced as a potential solution to the imminent financial collapsing of the great economy. It is of essence...
8 pages (2008 words) Assignment
how we can apply sample accounting to daily life
A person uses accounting techniques to make decisions on which investment is worthwhile. Similarly, the person will be able to make decisions on which investment should be ditched. For example, some investments could be attractive but need some accounting knowledge to consider the whole situation. Some investments could look lucrative but the related expenses and risks are threatening. However, some ventures seem to have low income as well as low risks. With the use of simple accounting, a person will be prepared to make a decision on the available alternatives (Juan, 2007). Consequentially,...
3 pages (753 words) Essay
auditing research paper for the "Maybe It Was, But We Weren't" case
Relating to this case, the determination of the reports issued by Friday as appropriate or otherwise, has been taken into concern as a primary objective of this paper. Moreover, the significant terms associated with auditing like ‘scope limitation’, ‘limited engagement and ‘piecemeal opinion’ have also been considered and related to the case in the discussion of this paper. Most significantly, how Friday should submit the auditor’s report to the Board of Directors as on its performance for the Year 3 and Year 2 from a comparative perspective has also been considered in the...
15 pages (3765 words) Research Paper
"Choices Are Everywhere:Why Can't We Just Have It All?"
Wolla argues that the fiscal cliff resulted from high debt level that emanated from wanting and purchasing more than what could be paid for. Dissecting to the article, debt reduction includes two difficult choices. The first choice involves reducing government expenditure on goods and services. However, this choice is surrounded by a difficult decision on which government spending to be reduced. The second choice of reducing government debt is through raising taxes. However, the question is who should pay more? One choice could be preferred over the other or the two choices could be blended....
3 pages (753 words) Article
Got a tricky question? Receive an answer from students like you! Try us!