Authors
Yogesh Badole
Abstract
The financial development is stated as the method which is helpful in improving the quality, quantity and other related proficiency of monetary transitional services. It is very well known fact that each and every country of the world is found to be determined between the strong and strength economies entirely. It is found to be difficult and challenging to acquire the limited long time funds in the capital markets and hence there present no other institutions to support and provide long-standing finance. The financial system work as intermediate and hence simplifies the course of fund with constituting numerous units of system as well. Every individual country’s economic growth highlight on the part of financial institutions and hence focused on the eventual financial development. It was very firmly and knowingly discussed that the policymakers and related economists usually decide that the financial development basically focused on the financial institutions like investment and commercial bank and other related markets. Also covers the different characteristics which was followed for the purpose of knowing the financial system and hence dealing with the overall development of the nation. The present study focused on the study of growth and development of different aspects of financial institutions and how it is going to be helpful in the aspects of financial growth of the nation. Keywords- Financial Development, Economic Growth, Financial institutions, Policymakers
Introduction
The development of any country is measured by the growth of economy in the country within the period of time. This economic growth is shown by the investment and production, also covers the Gross Domestic Product in the nation. When these factors grow, the people think that the growth is being improved in the form of living, called the development of economy.
An essential role is played by the financial sector in all the development of the nation. In this sector, financial institution is considered as a major and important constituent. These financial institutions work as a channel to transfer the resources to new borrowers from net savers. These financial institutions have been become an important source of funds for the economy. The needs of the commercial sector are fulfilled by the varieties of financial products, provided by these institutions. Along with the commercial areas, they help to new initiatives, small and large organizations as well as the industries located in the backward zones. Hence, it can be said that they assisted in decreasing the regional inequalities.
Financial Institutions of India
There are many institutions in India which support the Indian economy. In these institutions, these are some with their roles:
Finance Corporation of India (I.F.C.I) – This institution was developed in 1948 which come under IPC Act 1948. This corporation give the financial assistance only to the limited sectors which are manufacture, processing and then preservation of goods, Shipping business, Mining Industry, Hotel Industry, and the last one is the generation and supply of electricity.
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| APA Style | Badole, Y. (2019). Study of Financial Institution for Financial Growth. Academic Journal of Economic and Finance, 1(1), 1-5. |
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