Financial Inclusion : An Emerging New Model Of Economic Intensification Essay

There are some policy recommendations based the findings of this essay. It is a positive thing that enlarges the coverage of financial services, increasing the opportunities of access in financial services and activities. It will benefit for decrease the level of inequality. It claims that by allowing the poor an opportunity to get access into the financial

An unregulated banking financial institution might be fraud with unmanageable risks for the purpose of maximizing its potential return. In such a situation, the banking financial institutions might find itself in a serious financial distress instead of improving its financial health. Consequently, not only the depositors but also the shareholders will be deprived of getting back their money from the bank. The deterioration of loan quality also affects the intermediative efficiency of the financial institutions and thus the economic growth process of the country. This the reason for which the banking financial institutions are being regulated in all countries. The banking financial institutions are also the most regulated among all types of financial institutions in all countries, because of their substantial role in payment mechanism (in addition to protect the loan portfolio from decaying).

Introduction: Banking sector The Indian Banking industry governed by the Banking Regulation Act of India, 1949, falling into two broad classifications, non-scheduled banks and scheduled banks. Within the commercial banks there are nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). With the economic growth picking up pace and the investment cycle on the way to recovery, the banking sector has witnessed a transformation in its vital role of intermediating between the demand and supply of funds. The revived credit off take (both from the food and non food segments) and structural reforms have paved the way for a change in the

Wouldn’t it be nice if all Americans were more financially literate? We’d make better financial decisions, have less debt, save more and be better prepared for retirement. We may even have avoided much of our current economic plight by not getting as far into debt or by getting into mortgages that we couldn’t afford.

Financial literacy classes are problem today. Many people say that it is a necessary course to take, others disagree and say the course does not help. So what is the best choice to take? Financial literacy classes are essential because many students are not taught at home, it teaches students how to have a good budget, and also helps students with life situations. It's important to have financial classes to help students before they graduate high school.

The turmoil in the international financial markets of advanced economies, that started around mid-2007, has exacerbated substantially since August 2008. The financial market crisis has led to the collapse of major financial institutions and is now beginning to impact the real economy in the

The banking sector is the division of society’s economy, which is devoted to managing financial assets for its people. The industry invests on the finances, leveraging them to produce more wealth as it follows the regulation of the government. The holding of people’s financial assets is done as per customers’ wish and request. It all starts with a simple account opening, which in turn involves giving full individual information including their dates of birth, full names, next of kin, national document registration numbers, residence, gender, nationality, and so on. The bank vows to keep this information secure, and the

The economic development of most of the countries depends upon the efficiency of a well organized financial system. It is the financial system which is supply the necessary inputs for the production of goods and services in turn promotes increases the well being and standard of living of the people of a country. Thus, the financial system is a broader in term under its fold the major assets traded in they in the financial system are money and monetary assets. The major responsibility of the financial system is to mobilize the savings in the form of money and monetary assets and invest them productive ventures. An efficient functioning of the financial system facilitates the free flow of funds to promote productive activities and thus promote investment. The financial system promotes the intermediation between the small savers and investors and promotes faster economic development

Financial institutions are the most important institution in the development and financing the countries regardless of the developing countries, the countries has developed or is still underdeveloped. A large role in the country cause financial institutions must be sensitive and transparent in governance. However, not all financial institutions are banks. Financial institutions are included bank, finance companies, merchant bank, credit and leasing companies, national savings banks, co-operative bank, discount houses, factoring companies and so on. In addition, financial institutions can be classified into two which are depository and non-depository institutions. The common function among all these institutions is they were assigned to mobilize the fund from those who had fund to those who short of fund. So, we know that they were also known as financial intermediaries.

“It is a safe bet that change in financial market and financial institution will mark the discipline of finance over the foreseeable future and will produce new kind of institutions, markets and securities. (Fabozzi, 2002) Financial market and financial institution are playing more and more important roles in modern financial system. In general, a financial market is a mechanism for trading financial assets and securities in financial system. Financial assets are exchanged in financial markets. Financial intermediaries are institutions that channel funds from savers and depositors with cash surplus to people or organisations with cash shortage. The function of financial market and its classification, the effect of financial institutions, the role of financial intermediary and its category and government supervision in financial market and institutions are the four major parts in this essay.

Banks are playing a very important role in the economic development of a nation. The healthiness of the economy is directly connected to the soundness of its banking system. The role of banks has placed them as a very valuable partner in the process of economic development. Nowadays, banks are very useful for the utilization of the assets of a nation. If there would be no banks then a large segment of assets in the country would stay idle.

The banking sector us the division of society’s economy, which is devoted to managing financial assets for its people. The industry invests on the finances, leveraging them to produce more wealth as it follows the regulation of the government. The holding of people’s financial assets is done as per customers’ wish and request. It all starts with a simple account opening, which in turn involves giving full individual information including their dates of birth, full names, next of kin, national document registration numbers, residence, gender, nationality, and so on. The bank vows to keep this information secure, and the customer agrees to have authenticated the sector to do so. The customer then starts bringing his or her financial assets, and the bank uses it for further wealth creation, allowing the client to have them at any time.

An efficient financial sector will have its impact on economic well-being of any country by efficiently managing its financial resources. Meanwhile an efficient banking sector, usually a dominant entity in the financial sector, would uplift the well-being of the society especially through improved profitability, greater amounts of intermediated funds, better prices and increased financial system 's strength and stability. Such banking system which efficiently channels financial resources to productive use, is a powerful mechanism for long run economic growth [Levine (1997)].

Performance of banking sector is affected by legislature and framing policies by the government. Banking activities are significantly affected by budget proposal. The dynamics of Indian Banking sector are drastically changed with securitization act. The Securitization Act has given more power to the banking sector against defaulting borrowers. Further, changes to be implemented on the issue of voting rights among private sector banks are likely to speed up the consolidation process.

The financial system of the country is the outcome of its own peculiar historical evolution. The continuous interaction between the players of the financial system and public policy interventions has given birth to the evolution of the financial system. India began with the Central Bank and Reserve Bank of India and entrusted upon them the duty of regulating the banking sectors, Ministry of finance were given the responsibilities of regulating the other financial