To what extent are there significant differences in the nature of the Essay

To what extent are there significant differences in the nature of the financial systems in France, Italy and the UK - Essay Example The parties can be brought directly or indirectly. In the first case of direct finance, the parties with excess financial resources directly finance those with financial needs. The financial system consists of institutional units and markets that interact in a complex manner for the purpose of mobilizing funds for investment and providing facilities including payment system for the financing of commercial activity. The financial system starts with people and their business endeavour so that it can examine their finance needs and their demand for financial services and it can also identify the way in which needs are satisfied and demand is met. A financial system of is a complex one. At the top of the structure is the central government. The monetary and fiscal policies and regulations of the government directly influence the working of the financial system (tax rate, exchange rate etc). This is implemented through the central bank of the country. Other players in the system include t he individuals or households, non financial organizations both public and private, the stock and currency market, and financial institutions like banks and insurance companies etc. The value of financial transactions taking place is measured by the currency of the country. â€Å"A financial system raises finds from lenders or investors, making them available to borrowers or other users.† (Neave p.12). The central bank of France is called Banque de France. The currency used in France is the Euro, which replaced the French Franc in January 2002. Along with France, Italy and ten other European countries have all replaced their own currencies with the Euro and they are collectively referred to as the Euro zone. The system in France is well managed and regulated. The number of banks present has saturated the market to a certain extent. There is