Financial Institutions Financial intermediaries(全融中介) a firm whose primary business is to provide financial services and financial products Examples: bank(checking accounts支票存款，demand deposit话期存款，time deposit定期存 款loans贷款，CDs大额存单) investment company(mutual funds共同基金.) insurance company (term life insurance...) Financial service firms Accounting firms Financial advisory firms Regulatory bodies:govern all of the financial institutions SEC;China Securities Regulatory Commission NYSE New York Stock exchange;Shanghai Stock exchange Federal reserve bank;People's bank of china The Course of Finance 6
The Course of Finance 6 Financial Institutions Financial intermediaries（金融中介） a firm whose primary business is to provide financial services and financial products Examples: bank (checking accounts支票存款, demand deposit 活期存款，time deposit 定期存 款loans贷款, CDs大额存单 …) investment company (mutual funds 共同基金…) insurance company (term life insurance …) Financial service firms Accounting firms Financial advisory firms Regulatory bodies: govern all of the financial institutions SEC; China Securities Regulatory Commission NYSE New York Stock exchange; Shanghai Stock exchange Federal reserve bank； People’s bank of china
2.2 The Flow of Funds Function of finance:Bridge funds flow from the surplus unit to the deficit unit Directly /Through markets/Through intermediaries We shall examine various pathways from the surplus unit to the deficit unit Markets households firms Surplus Units Deficit Units government Intermediaries THE COURSE OF FINANCE 2017 SPRING SJTU
2.2 The Flow of Funds Function of finance: Bridge funds flow from the surplus unit to the deficit unit Directly /Through markets/Through intermediaries We shall examine various pathways from the surplus unit to the deficit unit THE COURSE OF FINANCE 2017 SPRING SJTU Markets Intermediaries Surplus Units Deficit Units households firms government
Fund Flows via Market Example:buying stocks or bonds Markets Stocks and bonds Surplus Units Deficit Units Intermediaries THE COURSE OF FINANCE 2017 SPRING SJTU 8
Fund Flows via Market THE COURSE OF FINANCE 2017 SPRING SJTU 8 Markets Intermediaries Surplus Units Deficit Units Example: buying stocks or bonds Stocks and bonds
Fund Flows via Intermediary Example:Savings and Mortgage loan Markets Surplus Units Deficit Units de Intermediaries 9 THE COURSE OF FINANCE 2017 SPRING SJTU po an
Fund Flows via Intermediary Example: Savings and Mortgage loan THE COURSE OF FINANCE 2017 SPRING SJTU 9 Markets Intermediaries Surplus Units Deficit Units de po sit s lo an s
Fund Flows via Intermediary and Market Example: mutual funds Markets Surplus Units Deficit Units Intermediaries Bank THE COURSE OF FINANCE 2017 SPRING SJTU Insurance company 10
Fund Flows via Intermediary and Market THE COURSE OF FINANCE 2017 SPRING SJTU 10 Markets Intermediaries Surplus Units Deficit Units Example: mutual funds Bank Insurance company