What is the financial system?

The financial system is a financial system structure established by a country in the form of law, and the division of responsibilities and relationships between various banks and non-bank financial institutions that make up this system. The financial system is gradually formed in the long-term development. It has developed into a complex and clear system. .

The financial system is a financial system structure established by a country in the form of law, and the division of responsibilities and relationships between various banks and non-bank financial institutions that make up this system. The financial system is gradually formed in the long-term development. It has developed into a complex and clear system. The so-called financial system refers to the banking system and its corresponding institutional provisions. Central banks and commercial banks are the main bodies of the financial system in western countries.

system

(1) The top layer of the financial system is laws and regulations and monetary policy, that is, financial activities and financial transaction rules in a general sense;

(2) The middle layer of the financial system is the composition of the financial system, including financial institutions and regulatory agencies;

(3) The basic level of the financial system is the behavior of participants in financial activities and financial transactions. In any financial system, its participants can basically be divided into five categories: people or departments with surplus funds, people or departments with shortage of funds, financial intermediaries, financial markets and financial regulatory authorities.