Perspectives on Financial Services

Financial services are the foundation of a modern economy. They provide mechanisms for assigning value, exchanging payment and determining and distributing risk, thus forming the essential underpinnings of global economic activity. This industry provides the wherewithal for the capital investment that drives innovation and productivity growth throughout the economy. The financial services sector is indispensable for the prosperity of nations, and so governments are vitally concerned with the viability of the financial system and with their abilities to impose economic policies through that system. The 1990s and the beginning of the new millennium have seen enormous and dramatic changes in the financial services industry. The impacts of, among other things, information technology, deregulation, globalisation, new technologies and the emergence of new markets and new products have changed and reshaped the financial landscape forever. New methods, techniques and players are emerging every day with all segments of players offering a plethora of services. Although a bit down at present because of the impact of the global financial crisis, India\'s financial services sector will enjoy generally strong growth m the coming years, driven by rising personal incomes, corporate restructuring, wider financial sector liberalisation and the growth of a more consumer-oriented, credit-oriented culture. Consequently, some of the facets of this sector may undergo changes over time as new developments take place. I shall strive to continue to update this book through incorporation of those developments.