THE FINANCIAL SYSTEM
For Financial System is the set of intermediaries that are authorized by law to the movement of financial resources. Included in these system not only traditional banks, but also many other non-bank entities such as companies that manage savings, insurance and traditional insurance online, leasing and factoring companies, both public and private. According to a commonly accepted definition in the Financial System includes the financial markets, where they exchange titles (Bags) and the subjects we have indicated as intermediaries. The Italian financial system plays a fundamental role in finding savings and transferring them to people who need to finance their personal or business activities.
PERSONS INVOLVED IN FINANCE
The protagonists of the Financial System in Italy and around the world can be divided into four main categories:
The families, who provide their savings to the financial system or requesting loans, mortgages and other loans for their living needs. The companies themselves can also be the subject of saving, investing a portion of its profits in financial assets. By definition, fall into this category also the control bodies of the financial markets.
HOW DOES THE FINANCIAL SYSTEM
Despite its apparent complexity, the Finance in Italy and abroad, working along two main channels: direct financing and indirect financing through intermediaries. In the first case, supply and demand of financial resources shall agree directly without any intermediate step. This is the case of the individual investor that invests in the stock market by buying shares or debentures of a company. In the second case, the indirect financing, the investor relies on a bank or a professional trader giving the job to buy or sell stocks. If an economy prevails in the first type of financing is called market-oriented Financial System, and the second is called the Financial System-oriented middlemen.
The Finance in Italy is historically oriented intermediaries that collect and then distribute the large amount of household savings. Despite the evolution of our economy and a certain finance of the economy, Italy remains one of the countries with the highest rate of private saving, with the banks that play a fundamental role in guiding investment decisions of citizens.
