Financial System

The Financial System

The financial system is the system that allows funds to be exchanged between lenders and borrowers.

Financial intermediaries such as banks and credit unions are the middle point between the lenders and borrowers. These are a key part of the financial system. This is because there needs to be funds available for individuals and businesses to borrow to fund investment for private and commercial activity.

What is the financial system?

Financial regulators ensure the financial system is strong and regulated. This is because people and businesses need confidence and trust when they lend money.

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