Abstract
Individuals and businesses have various motives for saving and a wide variety of financial requirements. Individuals save for retirement, house purchase, future consumption, to meet future payments and insurance against loss of life or loss of property and so forth. Businesses put aside cash to meet unexpected contingencies, to finance investment, takeovers or for future development of the enterprise generally. Both individuals and businesses place many demands on financial institutions, they may require short-term borrowing facilities and may have a strong demand for long-term capital to finance projects. In addition to meeting the varied needs of businesses and individuals, financial institutions also face demands from governments that typically wish to borrow funds to meet various commitments as well as finance for capital projects.
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Further reading
Fabozzi, F., Modigliani, F., Jones, F. and Ferri, M. (2002) Foundations of Financial Markets and Institutions 3rd edn, Prentice-Hall.
Madura, J. (2006) Financial Markets and Institutions 7th edn, South Western College Publications.
Mishkin, F. and Eakins, S.G. (2002) Financial Market and Institutions 4th edn, Addison-Wesley.
Saunders, A. (2003) Financial Markets and Institutions: a Modern Perspective McGraw-H ill.
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© 2005 Keith Pilbeam
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Pilbeam, K. (2005). Financial Institutions. In: Finance and Financial Markets. Palgrave, London. https://doi.org/10.1007/978-1-349-26273-1_3
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DOI: https://doi.org/10.1007/978-1-349-26273-1_3
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-62945-1
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