- Financial Sector basically includes a set in institutions, markets and instruments which helps a nation in economic development. Financial sector primary motive is to cover the costs so that all the other processes runs smoothly within an economy. It is a process of acquiring information, reducing the overall costs, enforcing contracts and executing the transaction results in markets and intermediaries. If a nation is financially strong it contributes more towards the goal of overall economic development. Different combinations of transactions, information and costs with relation to different tax systems and legal systems has raised a variety of contracts, intermediaries many time in country.
- Economic growth can be achieved by capital accumulation,boosting the saving rates,optimized allocation of capital, information regarding foreign investment and by encouraging more foreign inflow of money. Financial development is said to be directly related to the economic growth and it is one of the major role playing factor behind economic development. Countries with good financial growth enjoys a better growth in their standard of living. Financially strong countries also have a low poverty rate which is why their standard of living is high and less money has to be snd on this class which saves a lot of money that can be used in the further betterment of economy.
- Finance sector has a significant impact on the industrial sector and majorly it helps in promoting small and medium scale business which requires more of the labour intensive techniques to fulfill their work. Easy finance facility is provided to these business units so that it can create more job opportunities for people and contributes more towards the economic growth of the nation. These small scale industries if promoted correctly will become a big unit one day and it will provide a better standard of living and facilities to their employees. Most of the developed economies always try to maintain a perfect balance between both professional and personal life so that every individual working never feels and kind of stress or burden on himself.
- Finance can be further divided into many parts which makes it a very wide fields creating many job opportunities for all. Insurance, fund management, private banking, risk management, investment banking, accountancy are some of the example of finance sector and a person has a lot of options according to his interest. These sectors are different from each other and they offer many job opportunities to all the people. This is yet another way Finance sector is helping in the overall economic growth of the country by providing jobs to the deserving candidates which will contribute more towards the economic goals of the nation.
Main function of the financial institution is to maintain a sustainable financial growth by applying best techniques to allocate the funds and looking where it is needed the most. Analysis done by these bodies results in better funding, low risk and high income outcomes which increase our GDP and by this way financial development is directly related to the economic growth of the nation. A financially strong nation will always provide a better living and better access to everything to all its people.
Hope you all understood all the information and if you feel something wrong and if you have any other suggestions you can comment it down in the comment box. Thank you for reading this article.