Upload
ajay
View
224
Download
0
Embed Size (px)
Citation preview
7/21/2019 FUFA Lec 1.ppt
1/39
Page 1
Chapter 1:The Nature and Role of FSystem
7/21/2019 FUFA Lec 1.ppt
2/39
Page 2
Agenda Introduction to Financial System
Components of Financial System
Financial Institutions
Financial Marets
Financial Instruments
Financial Ser!ices
"egulators
Functions of Financial System
#$uili%rium in Financial Marets
Financial system and #conomic &e!elopment
Financial &e!elopment : Some Concepts
7/21/2019 FUFA Lec 1.ppt
3/39
Page '
What is this Financial System is all about ?
7/21/2019 FUFA Lec 1.ppt
4/39
Page (
What is this Financial System is all about ?
It is a Comple)* +ell integrated set of su%,systems* comprising o Marets*
Financial Institutions*
Instruments and
Ser!ices
Facilitates t-e transfer and allocation of funds* effecti!ely and effic
A financial system is concerned a%out Money
Credit/loan and
Finance
7/21/2019 FUFA Lec 1.ppt
5/39
Page 0
oney Medium of e)c-ange or means of payment
Barter system
old Coins
Sil!er Coins
Brone Coins
3eat-er Coins
Paper Money
4-at is Plastic Money 5
7/21/2019 FUFA Lec 1.ppt
6/39
Page 6
Credit or !oan Anyt-ing you %orro+ed
Pay somet-ing in return
7/21/2019 FUFA Lec 1.ppt
7/39
Page 7
Components of a Financial System
7/21/2019 FUFA Lec 1.ppt
8/39
Page 8
Financial "nstitutions
Business organiations t-at act as mo%ilisers and depositories of
Also pro!ide se!eral financial ser!ices
&eal in financial assets
9-ey may %e Specialied/ on,specialied
;rganied/
7/21/2019 FUFA Lec 1.ppt
9/39
Page =
Non #nancial $commercial $industrial "nstit
9-ey deal in non,financial instruments or assets
"eal estate *Mac-inery and #$uipment
Bot- -a!e t-eir o+n importance
7/21/2019 FUFA Lec 1.ppt
10/39
Page 1>
Financial "nstitutions % Classi#cation
Baning ?s. on Baning
Intermediary ?s. on intermediary
"egulatory
7/21/2019 FUFA Lec 1.ppt
11/39
Page 11
Financial "nstitutions % &an'ing (s) Non &a
Sa!ings Account
;t-er &eposits
7/21/2019 FUFA Lec 1.ppt
12/39
Page 12
Financial "nstitutions % &an'ing (s) Non &a
&ra+ee
7/21/2019 FUFA Lec 1.ppt
13/39
Page 1'
Financial "nstitutions% "ntermediaries (s) N"ntermediaries
7/21/2019 FUFA Lec 1.ppt
14/39
Page 1(
Financial ar'ets
It is an arrangement for %uying and selling claims
ser!ices.
7/21/2019 FUFA Lec 1.ppt
15/39
Page 10
Financial ar'ets * Classi#cation
"ural Marets
Money 3enders
Friends
o official reporting
7/21/2019 FUFA Lec 1.ppt
16/39
Page 16
Regulators
4-y do +e need regulators5
9op ten Fines %y FSA
"etail %aning -as
incurred t-e ma)imum
num%er of fraud incidentsIndia Baning Fraud Sur!ey 2>12
, &elloitte
7/21/2019 FUFA Lec 1.ppt
17/39
Page 17
Regulators
7/21/2019 FUFA Lec 1.ppt
18/39
Page 18
Regulators * Different countries
India US UK
Central Ban "BI Federal"eser!e
Ban of#ngland
Capital Maret"egulator
S#BI S#C FinancialSer!ices
Aut-ority
Insurance I"&A AIC FinancialSer!ices
Aut-ority
7/21/2019 FUFA Lec 1.ppt
19/39
Page 1=
Financial "nstruments
Two types of Financial Instruments:
Financial Assets:
Claim to payment of a sum of money and/or a periodic paymIts value arises from a contractual relationsip and not dueem!odiment.
Financial Securities
Investment Instrument used for raisin" capital
#roperty tat is pled"ed as collateral for loan
7/21/2019 FUFA Lec 1.ppt
20/39
Page 2>
Financial "nstruments
Financial Securities can %e:
Primary,+-ic- are issued %y t-e ultimate in!estors directly to ultima
de%entures and s-ares.
Secondary, +-ic- are issued %y financial intermediaries to ultimate s
as %an deposits* insurance policies
h i i f # i l
7/21/2019 FUFA Lec 1.ppt
21/39
Page 21
Characteristics of #nancial "nstruments
3i$uidity 9ransfera%ility Maturity Period
"ate of "eturn 9ransaction costs 9a) effects "is of default ?olatility of prices
Fi i l S i
7/21/2019 FUFA Lec 1.ppt
22/39
Page 22
Financial Ser+ices
Many of t-e financial institutions* apartfrom dealing in financial assets* alsopro!ide financial ser!ices
9-ese are suc- ser!ices t-at -elp in%orro+ing* lending * in!esting*maing/ena%ling payments andsettlements* managing ris e)posures*etc.
In!estment Baning* 3easing* StocBroing* Credit rating* &epositoriesSer!ices* etc.
Fi i l S i
7/21/2019 FUFA Lec 1.ppt
23/39
Page 2'
Financial Ser+ices
$ ili! i i Fi i l & ' t
7/21/2019 FUFA Lec 1.ppt
24/39
Page 2(
$%uili!rium in Financial &ar'ets
$%uili!rium is determined assumin" a perfect compmar'et
Tools Used: D$&A(D ) SU##* for Funds
$%uili!rium is esta!lised wen:
Demand for Funds for Sort Term ) +on" Term Investment,
Supply of funds "enerated out of Savin"s and Credit Creation
Fi i l S t d $ i D l t
7/21/2019 FUFA Lec 1.ppt
25/39
Page 20
Financial System and $conomic Development
EconomicDevelopment
CapitalFormation
Surplus SpendingUnits
Deficit SpendingUnits
Income-(Consumption
+Own Investment)
Income-(Consumption+ Investment)
Surplus or SavingDeficit or egative
Saving
Financial S!stem
Financial ,e+elopment : Ne- Concepts
7/21/2019 FUFA Lec 1.ppt
26/39
Page 26
Financial ,e+elopment : Ne- Concepts
#fficiency
Inno!ation
Financial #ngineering
Financial "epression 3i%eraliation
&eregulation
Pri!atiation
Tan' *ou
7/21/2019 FUFA Lec 1.ppt
27/39
Page 27
Tan' *ou
What is this Financial System is all about ?
7/21/2019 FUFA Lec 1.ppt
28/39
Page 28
What is this Financial System is all about ?
Activity - : &ar'etin" "oals reaced
7/21/2019 FUFA Lec 1.ppt
29/39
Page 2=
Activity - : &ar'etin" "oals reaced
In t-e a%o!e 2 e)amples identify t-e follo+ing
4-at is t-at t-e companies +ere trying to ac-ie!e 5
3ist do+n your points and gi!e a suita%le -eading
C-oose your group leader and present your points
Be organied in your presentation as it carry@s mars
9ime allotted : 1> minutes
Di"ital &ar'etin" Applications
7/21/2019 FUFA Lec 1.ppt
30/39
Page '>
Di"ital &ar'etin" Applications
oals of Companies trou" di"ital mar'etin"
An Ad!ertising medium
Customer direct response medium
Platform for sales and transactions 3ead generation met-od
&istri%ution c-annel
Customer ser!ice mec-anism
"elation %uilding medium
0at1s 0at 2
7/21/2019 FUFA Lec 1.ppt
31/39
Page '1
0at s 0at 2 Internet Mareting #,Mareting &igital Mareting
Definitions
Internet &ar'etin" Ac-ie!ing mareting o%jecti!es t-roug- applying digital tec-nology suc- as internet. $3&ar'etin":
#,mareting or electronic mareting see for e)ample Mc&onald and 4ilson* 1=== and Sm2>>0 +-ic- can %e considered to -a!e a %roader scope since it refers todigital media sucand +ireless media* %ut also includes management of digital customer data and electronic relations-ip management systems e,C"M systems.
Di"ital &ar'etin" "ecogniing t-e strategic importance of digital tec-nologies and de!eloping a planned app"ecogniing t-e strategic importance of digital tec-nologies and de!eloping a planned app
migrate customers to online ser!ices t-roug- e,communications and traditional communicamigrate customers to online ser!ices t-roug- e,communications and traditional communica "etention is ac-ie!ed t-roug- impro!ing our customer no+ledge of t-eir profiles* %e-a!io"etention is ac-ie!ed t-roug- impro!ing our customer no+ledge of t-eir profiles* %e-a!io
dri!ers* t-en deli!ering integrated* targeted communications and online ser!ices t-at matcdri!ers* t-en deli!ering integrated* targeted communications and online ser!ices t-at matcneeds.needs.
&asic t-o concepts mar'eting
7/21/2019 FUFA Lec 1.ppt
32/39
Page '2
&asic t-o concepts mar'eting
Customer Centric
An approach to marketing based on detailed knowledge obehavior within the target audience which seeks to fulll
individual needs and wants of customers.ulti channel mar'eting strategy
&efines -o+ different mareting c-annels s-ould integrate and su
ot-er in terms of t-eir proposition de!elopment and communicatio
t-eir relati!e merits for t-e customer and t-e company.
7/21/2019 FUFA Lec 1.ppt
33/39
Page ''
&odule 4:$35usiness and $3Commerce
Financial "nstitutions % &an'ing (s) Non &a
7/21/2019 FUFA Lec 1.ppt
34/39
Page '(
Financial "nstitutions &an'ing (s) Non &a
Sa!ings Account
;t-er &eposits
Financial ar'ets
7/21/2019 FUFA Lec 1.ppt
35/39
Page '0
Financial ar'ets
It is an arrangement for %uying and selling claims
ser!ices.
Financial "nstitutions
7/21/2019 FUFA Lec 1.ppt
36/39
Page '6
Financial "nstitutions
Financial ar'ets
7/21/2019 FUFA Lec 1.ppt
37/39
Page '7
Financial ar'ets
It is an arrangement for %uying and selling claims
ser!ices.
Regulators
7/21/2019 FUFA Lec 1.ppt
38/39
Page '8
g
9op ten Fines %y FSA
Dars-ad Me-ata
Satyam Fraud
#nron
Regulators
7/21/2019 FUFA Lec 1.ppt
39/39
Page '=
g
9op ten Fines %y FSA
Dars-ad Me-ata
Satyam Fraud
#nron