All types of activities which are of financial nature, could be brought under the term ‘Financial Services’. The term in a broad sense, means ‘mobilizing and allocating savings’. Thus, it includes all activities involved in the transformation of savings into investment. | Revise Lecture 11 Lecture 11 Financial Services Financial Services All types of activities which are of financial nature, could be brought under the term ‘Financial Services’. The term in a broad sense, means ‘mobilizing and allocating savings’. Thus, it includes all activities involved in the transformation of savings into investment. Financial Services The financial services can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of them, particularly to corporate customers. Financial Services Thus, the financial services sector is a key area and it is very vital for industrial developments. A well- developed financial services industry is absolutely necessary to mobilize the savings and to allocate them to various investable channels and thereby to promote industrial development in a country. Financial Services Classification of Financial . | Revise Lecture 11 Lecture 11 Financial Services Financial Services All types of activities which are of financial nature, could be brought under the term ‘Financial Services’. The term in a broad sense, means ‘mobilizing and allocating savings’. Thus, it includes all activities involved in the transformation of savings into investment. Financial Services The financial services can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of them, particularly to corporate customers. Financial Services Thus, the financial services sector is a key area and it is very vital for industrial developments. A well- developed financial services industry is absolutely necessary to mobilize the savings and to allocate them to various investable channels and thereby to promote industrial development in a country. Financial Services Classification of Financial Services Financial Services Classification of Financial Services: The financial intermediaries in Pakistan is traditionally classified into two; Capital market intermediaries Money market intermediaries Financial Services Classification of Financial Services: The capital market intermediaries consist of the term- lending and the investing institutions which mainly provide long-term funds. Financial Services Classification of Financial Services: The money market intermediaries consists of commercial banks, cooperative banks and other agencies which supply only short-term funds. However, the term ‘financial services industry’ includes all kinds of organizations which intermediate and facilitate financial transaction of both individual and corporate customers. Lecture 12 Financial Services Scope of Financial Services Financial Services Financial services cover a wide range of activities. Their activities can be broadly classified into two, namely; Traditional activities Modern activities .
