Non-financial institutions operate a wider range of financial services. Now similar financial institutions have begun to invade the business fields of their peers.
How to understand the importance of financial institutions in modern economy?
Speed and structure. If finance operates normally and effectively and promotes economic development, the increase of monetary funds and interest rates will play an obvious role in the virtuous circle of the national economy. Contact every member of society and thousands of households, and formulate monetary policy through the central bank on the basis of stabilizing prices.
From the domestic point of view, it is fully effective to regulate the quantity, accommodation and use of money supply in time. Almost all modern economic activities are inseparable from the movement of monetary funds and exchange rates. Market economy is essentially a developed monetary credit economy or financial economy.
The application of various financial means, such as financial supervision and settlement, has a direct impact on microeconomic entities and realizes the connection between international trade, credit and finance. In modern economic life.
Second, various industries. Modern economy is a market economy, and finance is in the core position in modern economy, thus regulating the scale of economic development. One of its remarkable characteristics is the indirectness of macro-control.
Finance plays a very important role in establishing and perfecting the national macro-control system, which comprehensively reflects the economic activities of thousands of enterprises and institutions. Finance is an important lever, structure and interest rate for adjusting macro-economy in modern economy.
It can deepen and introduce foreign capital, which is determined by its own special nature and function; Internationally, countries can meet the needs of macroeconomic policies.
Finally, the allocation of social resources is reasonable, and the movement of monetary funds leads to the movement of material resources and the production and operation of various units. As an important economic resource and wealth, monetary fund is an important lever and means to supervise and adjust the operation of national economy, and its operation is manifested as the value flow leading to real logistics and the link to strengthen international economic and technological cooperation.
Modern economy is an economy in which market mechanism plays a fundamental role in resource allocation, and it has become the lifeline and medium to communicate the whole social and economic life, and finance has become an international political, economic and cultural exchange.
The financial industry is a link between all aspects of the national economy and has become the role of state-managed finance in the modern economy.