International Financial Markets

TABLE OF CONTENTS

FORCES FOR RAPID GROWTH OF INTERNATIONAL FINANCIAL MARKETS 2

DEREGULATIOIN 2

THE MORE LIKELY FUTURE OF DEREGULATION 3

INNOVATION 5

SECURITIZATION 9

BENEFITS OF SECURITIZATION 11

INTERNATIONALIZATION 13

REFFERENCES. 16

The following complimentary forces have been responsible for the rapid growth of the international financial markets.

International financial markets perform a vital function within the global economic system. The financial markets channel savings to those individual institutions needing more funds for spending than are provided by their current incomes. The financial markets are the heart of global financial systems attracting and allocating savings and setting interest rates and the prices of financial assets (stock, bonds etc)

FORCES FOR RAPID GROWTH INTERNATIONAL FINANCIAL MARKETS

A. DEREGULATION

This is the elimination of government regulations which have become important in shaping how financial service providers compete and perform and in order to serve the public.

The rapid intense of competitive rivalry has been fueled in part by major government around the world, especially in the United States, Japan, and Europe and freeing the financial sector from many government rules.

Financial service competition is increasingly taking the place of the government rules in the hope that the public will benefit in terms of more convenient service at lower cost.

The expanding competitive struggle in deregulated financial market place has given rise not only to new services and new financial instruments but also new types of financial institutions large, multi product; oriented organization that are designed to weather the risk is inherent in today’s volatile financial market place.

Financial institution looks alike offering the same ways, traditional distinctions between one type of financial service institution and other are becoming hopelessly blurred the process of homogenization in creating real challenges for marketing professionals trying to convince the public that their particular financial institution is really different from its rivals.

More financial institution are establishing interstate operations expanding their marketing programs to cover whole regions and, in many instances the whole globe known as globalization, this is because of deregulation, falling geographic barriers to international competition and strong pressure to consolidate smaller financial service institution in larger ones.

More financial institutions are becoming stockholder owned corporation in order to open up new sources of capital to fund their expansion. Under