One
of the most important functions of welldeveloped financial markets is to channel
the savings into longterm and shortterm investments. Financial systems play
a vital role in economic development, as a wellregulated and welldeveloped financial
markets sector is essential to achieve the most efficient allocation of resources.
India has made significant progress in financial liberalization after the economic
reforms were introduced in 1992. A rebound in share market, buoyant forex reserves
and a growing confidence in the banking system are some of the facts that have
been recognized internationally. The impressive macroeconomic performance and
stability attracted foreign institutional investments in India. These entire feelgood
factors look sustainable. On the other side, the biggest concern is the rising
oil prices that could result in higher inflation, higher unemployment, lower real
income and volatile exchange rates, and would leave an impact on the overall economy
in the longterm.
In
this context, there is a tremendous scope for the development of Indian financial
markets. Keeping this in view, the book The Dynamics of Indian Financial Markets
is likely to benefit the readers. A glimpse of the matters covered in the book
is provided in the following pages.
Financial
systems in an economy consist of various institutions, financial markets, regulators
of law and practices, stakeholders and s. In the category of financial
institutions, banks are the most important players and hold a key role in mobilization
of funds from one user to another. The banking sector in our economy has undergone
various phase of reforms after independence. But the process of reforms which
started in 1992 after the economic liberalization was remarkable in the Indian
banking system. |
