Financial Systems, Banking and Monetary Policy

A financial system refers to a complex and highly interlinked group of institutions, such as banks, NBFCs, insurance companies and stock exchanges that allow the exchange of funds. Lenders, borrowers and investors are the three primary participants in a financial system. These systems exist at local, national, and global levels. Banking is an industry that is made up of a large network of banks that provide various financial and non-financial services to individuals and businesses. Banks handle cash, credit and other financial transactions. They also issue loans on rates higher than the rate at which they accept deposits and thereby make a profit. Banks provide advances and loans in various forms such as cash credit, overdraft facility, call money and bill discounting. The central banks of different countries use the macroeconomic policy tool named monetary policy to influence the cost and availability of money supply in an economy. This book includes some of the vital pieces of work being conducted across the world, on various topics related to financial systems, banking and the monetary policy. Those in search of information to further their knowledge will be greatly assisted by it.