Financial technologies and systems

• Financial systems:

  • the relationship between those who borrow, those who invest and the insti that, hold, gives and takes in this money
  • Global finance systems increase glob which increase interconnected countries > invest and take loans e.g. World Bank > banks work with mill of ppls money inc multinational corps who invest profit for interest and ppl who buy shares and stocks
  • The global financial system facilitates quicker and easier flows of money, goods and services between countries
• Financial systems > banks:

  • those who have money and want profit invest in banks to get interest
  • those who need money take loans from banks and pay back interest
  • banks uses money from those who deposit by giving to loans
• Financial systems > financial deregulation:

  • Financial deregulation has reduced barriers to capital flows, meanwhile, communications technology has made trade and financial transactions faster and more secure
  • The markets and institutions that facilitate global flows of capital are concentrated in HDE countries e.g. the City of London is one of the world’s leading financial centres
• Financial systems > recession:

  • glob has disadvantages as a financial crisis of recession in one country can have significant impacts on financial systems around the world
  • e.g. Global Financial Crisis 2008 > caused by a fall in US housing market > Iceland's banking system collapsed and EU countries unable to repay gov debt
• Financial tech:

  • made money easily accessible
  • crypto
  • remittances
  • companies operate even when relocated to other countries
  • informed decisions abt investments, buying and selling available due to global comm tech
  • ability to connect with inter banks > offshore banking
  • glob banks communicate w national and regional branches
  • internet > can transfer money