The document compares the financial systems of the United States and Philippines. It outlines that the US system is the largest in the world and relies heavily on capital markets and direct finance. The Philippine system is structured around universal, commercial, savings and cooperative banks, with universal and commercial banks making up less than 5% of institutions but over 90% of the banking market share. Financial systems play an important role in allocating resources and enabling risk sharing in modern economies.
The document compares the financial systems of the United States and Philippines. It outlines that the US system is the largest in the world and relies heavily on capital markets and direct finance. The Philippine system is structured around universal, commercial, savings and cooperative banks, with universal and commercial banks making up less than 5% of institutions but over 90% of the banking market share. Financial systems play an important role in allocating resources and enabling risk sharing in modern economies.
The document compares the financial systems of the United States and Philippines. It outlines that the US system is the largest in the world and relies heavily on capital markets and direct finance. The Philippine system is structured around universal, commercial, savings and cooperative banks, with universal and commercial banks making up less than 5% of institutions but over 90% of the banking market share. Financial systems play an important role in allocating resources and enabling risk sharing in modern economies.
The document compares the financial systems of the United States and Philippines. It outlines that the US system is the largest in the world and relies heavily on capital markets and direct finance. The Philippine system is structured around universal, commercial, savings and cooperative banks, with universal and commercial banks making up less than 5% of institutions but over 90% of the banking market share. Financial systems play an important role in allocating resources and enabling risk sharing in modern economies.
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COMPARISON OF THE FINANCIAL
SYSTEMS IN VARIOUS COUNTRIES
Comparing Financial Systems
Information and differences between United States of America and Philippines • Introduction
There are many dimensions to compare between different countries’ I
financial systems. One dimension is the efficiency of each financial market. There have been many studies on the efficiency of financial markets.
Financial systems are crucial to the allocation of resources in a modern
economy. They channel household savings to the corporate sector and allocate investments funds among firms; and they enable households and firms to share risks. These functions are common to the financial systems varies widely. In United States and the United Kingdom competitive markets dominate the financial landscape, whereas in France, Germany, and Japan banks have traditionally played the most important role. For example, financial markets may be bad for risk sharing; competition in banking maybe inefficient; financial crises can be good as well as bad; and separation of ownership and control can be optimal. Financial institutions are not simply veils, disguising the allocation mechanism without affecting it, but are crucial to overcoming market imperfections. An optimal financial system relies on both financial markets and financial intermediaries • ROLE OF FINANCIAL SYSTEM IN ECONOMIC DEVELOPMENT OF A COUNTRY
Financial systems help in growth of capital market
Government Securities market Financial system helps in infrastructure and growth Employment growth is boosted by financial system Financial system helps in fiscal discipline and control of economy Financial system’s role in Economic Integration Role of financial system in political stability • The United States Financial Systems
• The U.S financial system is easily the largest in the
world although that position stands to be challenged by a unified European financial market and, in many respects, the most advanced. It also has the greatest diversity of institutions, the widest variety of instruments, and the most highly developed derivative markets. In many areas of finance, it leads in innovation. Because of these anomalies, which are apparent to even the most casual student of financial systems. • Basic Characteristics of the U.S Financial System
• The U.S financial system possesses three
characteristics that differentiate it from the financial systems of other countries. These are its extreme degree of fragmentation , as reflected in the enormous number of individual institutions; its unparalleled degree of diversity; and the relative importance of direct finance, i.e., the raising of funds by the issue of open-market instruments such as stocks, bonds, and commercial paper. • The Philippine Financial Systems
• The Philippine financial system is structured by
type of bank including universal, commercial, savings and cooperative banks, according to statistics complied by Asianbanks.net from noted bank adviser Paul Sheehan. Although the country’s banking system primarily consists of rural and thrift banks, universal and commercial banks account for larger market shares. • Universal and commercial banks make up less than 5 percent of the total banking institutions in the Philippines but account for a much larger portion of the market share, explains data from Asianbanks.net. Universal and commercial banks differ from the banking institutions by offering a wider variety of financial services according to Investopedia. In the Philippines, these banks have asset values of over 3 trillion pesos, making up over 90 percent of the banking market share in the country. The Philippine financial system consists mainly of rural banks, which make up the majority of total banking institutions, notes Asianbanks.net.