INTRODUCTION TO FINANCIAL SERVICES Essay Example | Topics and Well Written Essays - 2000 words - 1

INTRODUCTION TO FINANCIAL SERVICES - Essay ExampleThe unique quality of the financial intermediary here is that their assets and liabilities are overwhelmingly financial.2The financial intermediaries succeed by using customers savings (who save in order to maximise the savings but with minimal risk) to give to investors (who fights to get the money at the cheapest rate as possible but with less strings attached) with the choose of making a return on their investments for themselves and their customers. Their main role can be said to be channelling of customers savings to investors who so need the money to make meaningful investments that give skip to an economic growth and development for the society.3 The financial intermediary strives to make the better deal of a monumental profit as possible from these savings as to keep the institution running. (See appendices 2)According to J.O. Sanusi (2002), availability of investible notes for investment in any economy can be said to b e the key portion in the growth process of that economy especially as it is realised that these funds are a necessary condition for product production and employment growth. Efficient financial intermediaries through the role they get in any economy are of course seen as the best means of achieving higher levels of output production, employment, and income which invariably enhance the living standards of the population. It cannot be argued therefore that countries that have enjoyed or are enjoying economic prosperity such as the Western countries are having such an efficient mechanism for mobilising financial resources and allocating same for amentiferous investment.4Banks long ago were considered as the best intermediary since they are able to provide an important electropositive means of mobilising the savings from customers, and allocating these funds to the investors for finance investment projects