Jump to ContentJump to Main Navigation
Principles of Financial Regulation$
Users without a subscription are not able to see the full content.

John Armour, Dan Awrey, Paul Davies, Luca Enriques, Jeffrey N. Gordon, Colin Mayer, and Jennifer Payne

Print publication date: 2016

Print ISBN-13: 9780198786474

Published to Oxford Scholarship Online: October 2016

DOI: 10.1093/acprof:oso/9780198786474.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 03 December 2021

The Financial System

The Financial System

(p.22) 2 The Financial System
Principles of Financial Regulation

John Armour

Dan Awrey

Paul Davies

Luca Enriques

Jeffrey N. Gordon

Colin Mayer

Jennifer Payne

Oxford University Press

The financial system is often distinguished from the so-called ‘real’ economy—the firms who make things or provide services and the people who consume them. The financial system’s significance lies in the functions it performs for the real economy: intermediating between the personal sector of an economy comprising individuals and households and the corporate sector consisting of business firms. This chapter provides a guide to the structure and functions of the financial system. Its purpose is not to describe in precise detail the role of all of the different components, but to offer a sufficient understanding to appreciate what it does, why it matters, and what can go wrong. It then provides a foundation for understanding why, where, and how regulators seek to control its functioning.

Keywords:   financial system, banks, financial markets

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .