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It is generally observed that financial systems around the globe perform similar functions, yet when we examine them closely we
Finance & Accounting
Pages 8 (2008 words)
Running Head: Financial Systems Financial Systems [Writer’s Name] [Institute’s Name] FINANCIAL SYSTEMS The financial systems of the main developed economies vary significantly. Overall, German financial system and Anglo-Saxon financial system are considered to be the two polar extremes between which every developed nation can be classified.
87), bank-dominated financial systems are more competent in eventually softening non-diversifiable aggregate shocks and in offering indemnity against particular risks if markets are imperfect because of issues of asymmetric data. 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. In 1987, Kennedy talks in rather more calculated but still encouraging tones regarding the role of German banks. He said that with all their known limitations, capital markets within Germany, by making resources accessible to a huge set of technically advanced businesses on a level unequalled within Britain, form much of the variation in the fiscal development and performance between Germany and Britain (Evanoff et al, 2008, p. 279). The removal of British banks during the latter part of the 19th century was driven by a series of bank crashes. By the eighties, banks were no longer demonstrating such an inclination to work as collaborators in industrial apprehensions. ...
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