Russian Financial System Falling Behind Essay

In the essay I will discuss the main differences between the U.S and China banking systems. I will start by focusing on the over arching structure both banking systems use. I will talk about the check and balance system both countries use in order to regulate banks. I will go into depth on the different ways both countries used monetary policy in order respond to current and past economic slow downs. Compare and contrast the different stipulations that each banking system put in place in order to create economic prosperity and prevent a turn for more economic slowdown.

The Russian state has been characterized by its strong heritage of powerful, autocratic leadership. This domination by small ruling elite has been seen throughout Russia's history and has transferred into its economic history. Throughout the Russian czarist period, to the legacy of seventy years of communism; Russia has been a country marked by strong central state planning, a strict command economy and an overall weak market infrastructure (Goldman, 2003). Self-interest, manipulation and corruption have all been present in the Russian economy, and have greatly helped the few as opposed to the many. To this day, Russia still struggles with creating a competitive and fair market.

The system allows for the private ownership of capital, communication through prices and coordinates economic activity through markets

The history of central banking in America is a very interesting topic that carries a direct impact on today’s banking. The paper focuses on how the centralized banking system started with special emphasis on the First and the Second banks of America and the inception of the Federal banking system. Highlighted also are the circumstances that led to the established of the financial organs alongside the relevance of the Federal Reserve today (Fischer, 2015). The topic directly impacts on how financial crisis and all the economic challenges are being handled today. The Federal Reserve is still the one which regulates all the fiscal activities of America. The Federal Reserve refers to the centralized banking organization of America. The banking system was established early in the 20th century through the adoption of the Federal Reserve legislation. The inception of the central system was majorly triggered by a sequence of fiscal worries specifically the famous 1907 fright. The Federal Reserve Act had notably passed through several hearings, debates alongside changes and was upheld by the majority in the congress. The Federal Reserve System came as the third central banking system of America, after the first and the second banks of America (Bordo, 2015).

Whether a reader agrees or disagrees with how the centralized banking system was created, the foundation for which it was built off of has continued to grow over a century with key fundamentals still in place today. The author’s implications demonstrate that an economists, the intellectuals, were responsible for the banking reform that led to a structured banking system. Could this all have been possible without the influence of the economists? In my opinion, the author has provided enough evidence that would allow the reader to properly analyze and have confidence in the integrity of the article.

Financial markets are crucial to promoting greater economic efficiency by channeling funds from people who do not have a productive use for them to those who do. Well functioning financial markets are a key factor in producing high economic growth, and poorly performing financial markets, vice versa. Financial markets and intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds.

1. Describe the different kinds of financial institutions that make up the US financial system.

Every nation has their own currency and banking system to control and guide their economic health. We will focus on a few systems and analyze them for clarity similarities and differences.

Banking system and the Financial Institutions play very significant role in the economy. First and foremost is in the form of catering to the need of credit for all the sections of society. The modern economies in the world have developed primarily by making best use of the credit availability in their systems. An efficient banking system must cater to the needs of high end investors by making available high amounts of capital for big projects in the industrial, infrastructure and service sectors. At the same time, the medium and small ventures must also have credit available to them for new investment and expansion of the existing units. Rural sector in a country like India can grow only if cheaper credit is available to the farmers for their short and medium term needs.

The Bombardment of the psyche of the average citizen by the financial industry in newspapers, magazines, television and the internet offering different financial services from mortgage loans to credit cards brings to mind a question raised by Ismail (2008:1) “ … if finance is everywhere does this mean that we have in some sense become financialized.”

This research essay is done for the purpose to compare and contrast the financial system between two countries chosen which are Australia and Singapore. This research essay is mainly concentrate on different types of institutions in the financial system and the role they play. Moreover, the different types of institutions in different countries will then compare in order to analyze the similarity and differences.

4. The creation of a financial credit system would help states to improve their economy and promote activities to increase their developments. But if the credit system is managed by a powerful

1(a) Financial System is a complex yet connected system that consist of financial intermediaries, financial institutions and financial assets.

Financial systems and financial regulators are entities setup by the government of a country to ensure the availability and flow of financial resources in a fair and lawful manner without exploitation or monopolization of the resource by individuals or organizations. The task of ensuring the availability of finance and its transference is taken up by the financial systems of a country while the task of monitoring and regulating is taken up by the financial regulator.

Singapore Financial System is one of the world’s largest financial systems. According to Mishkin (2009), Financial System refers to a system that consists of the markets and institutional units that interact for the purpose to provide facilities such as payment and transfer systems and organizing the funds for investment from saved surplus funds to units who have shortage