21654 Lecture Notes - Lecture 11: Byrsonima Crassifolia, Financial Services, Consumer Protection
International Finance
Finance involves monetary transactions of buying, selling, lending and investing, conducted on an
international scale. Finance facilitates in for-profit enterprises, as well as delivering social goals.
Finance products include personal loans, home mortgages and business loans. Investment
products include shares, funds, bonds, insurance and derivatives. Financial services include
investment advice and brokerage services.
Financial markets consist of of sellers and buyers exchanging products, and serve individual
investors, financial service companies, private sector companies, state owned companies,
investment funs and governments.
Governments control international finance through regulation (laws and taxes) and trade rules,
such as tariffs, subsidies and trade agreements.
Australian Regulation
Australian Securities and Investment Commission (ASIC) is responsible for market integrity,
consumer protection and regulation of investment banks and finance companies.
Australian Prudential Regulatory Authority (APRA) is responsible for licensing and prudential
supervision of banks, insurance companies and super funds, each required to report on a periodic
basis and adhere to capital adequacy guidelines for banks
RBA is responsible for monetary policy and interest rate settings.
International finance scandals result from a conflict of interest between commissions and clients,
advice generally tending to benefit the company over the client.
Globalisation of finance is facilitated by light government regulation on the assumption of benefits
from laissez-faire capitalism and inherent stability of capitalist markets.
Involvement
Non-finance companies have shifted from being merely instrumental to an end in itself as financial
capital has grown faster than production and trade, being more lucrative than primary production
and manufacturing.
Derivatives are not actually products or services but offer potential gain at the expense of great
risk. Casino capitalism describes the speculation on derivatives to produce profit at the risk if loss.
GFC outcome of collapsing financial institutions and stock markets, preventing government
bailouts and US housing market collapse resulting in evictions and unemployment.
find more resources at oneclass.com
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Document Summary
Finance involves monetary transactions of buying, selling, lending and investing, conducted on an international scale. Finance facilitates in for-pro t enterprises, as well as delivering social goals. Finance products include personal loans, home mortgages and business loans. Investment products include shares, funds, bonds, insurance and derivatives. Financial services include investment advice and brokerage services. Financial markets consist of of sellers and buyers exchanging products, and serve individual investors, nancial service companies, private sector companies, state owned companies, investment funs and governments. Governments control international nance through regulation (laws and taxes) and trade rules, such as tariffs, subsidies and trade agreements. Australian securities and investment commission (asic) is responsible for market integrity, consumer protection and regulation of investment banks and nance companies. Australian prudential regulatory authority (apra) is responsible for licensing and prudential supervision of banks, insurance companies and super funds, each required to report on a periodic basis and adhere to capital adequacy guidelines for banks.
