Bank Product Profitability - Essay Example

There are so many countries in which the development is very low. That is all due to the lack or resources and lack of financial approaches, the financial institutions for every country needs high investment all these markets are the part of macro economics studies in which the markets of different kinds can be brought together to set the overall structure of the economy. These markets in every country serve as the full adjustment of economic variables within them and are responsible for the growth of the country.

In many of the economies, financial markets are those places at which the people can easily buy and sell the securities of different types. These markets are associated with the financial assets and these assets are the financial securities that they buy and sell in the market. The assets which come under the category of the financial assets are the financial securities such as the stocks of various types and bonds with different maturities and the commodities at low costs. These markets are called the efficient market where the buying and selling of different types of securities takes place.

These financial markets serve various functions in all the countries of the world and are doing g efforts to attain the liquidity at high levels. In these financial markets it is easy to buy and sell for the people because they offer the large number of buyers and the large number of sellers for selling of the securities. The major objective of the creation of these financial markets is the creation of the good use of savings in the betterment of the economic growth of the country because if the economy does not use the good methods for adjustment of savings the growth of that economy will be low.

Thus for their growth of any economy the healthy growth of the financial markets us necessary. (Andrade, Gegor, Mitchell, Stafford, 103-120, 2001)"Financial markets, institutions and instruments bridge the gap between the academic and professional finance communities. With contributions from leading academics, as well as practitioners from organizations such as the SEC and the Federal Reserve, the journal is equally relevant to both groups. Each issue is devoted to a single topic, which is examined in depth, and a special fifth issue is published annually highlighting the most significant developments in money and banking, derivative securities, corporate finance, and fixed-income securities".

(Athanasoglou, Brissimis, Delis, n.p., 2005)These financial markets have three basic types of functions these are the first function which is associated with these financial markets is the raising of capital in the capital markets, the capital markets are the securities markets and their functions are conducted by the government and different private companies. They raised the funds there and these are associated with the long term securities and they are the stock markets and the bonds market with long term maturities.

These capital markets are further divided in to two more markets which are called the primary markets