Financial services, products and markets

"The notions of financial services, products and markets are interlinked, and relate to the financial sector industry,  one of the most important economic sectors.

Financial services are the processes by which consumers or businesses acquire financial goods. This segment of the economy is made up of a variety of financial firms including banks, investment houses, lenders, finance companies, real estate brokers, and insurance companies. Financial products, on the other hand, are not tasks. In simple words, any asset which holds capital and can be traded in the market is referred to as a financial product.  Cash, Stocks, bonds, loans, commodity assets, real estate, and insurance policies are examples of financial products. Lastly, financial markets are the marketplaces which allow for the sale and purchase of financial instruments. Financial markets allow for those who have excess funds and make these funds available to those who need additional money. Financial markets therefore provide a place where individuals, companies and government organisations have access to capital. Financial markets make it possible to let money flow to where it is needed most.

The financial industry is one of the primary drivers of a nation's economy. It provides the free flow of capital and liquidity in the marketplace. When the sector is strong, the economy grows, and companies in this industry are better able to manage risk. The strength of the financial industry is also important to the prosperity of a country's population. When the sector and economy are strong, consumers generally earn more. This boosts their confidence and purchasing power. When they need access to credit for large purchases, they turn to the financial services sector to borrow. If the financial sector fails, though, it can drag a country's economy down. This can lead to a recession. When the financial system starts to break down, the economy starts to suffer.

Because of the importance of the financial industry, different sectors within this industry are regulated. Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This regulation also includes the possibility of sanctions, such as criminal sanctions, when breaching the provisions of these regulations. An example of this are the regulatory reforms in the banking sector after the global financial crisis of 2007-2008, in which this sector had played a critical role. "