FIN 010 Lecture Notes - Lecture 8: Santa Barbara City College, General Insurance, Life Insurance
Document Summary
The financial functions are performed by financial institutions and markets with oversight from their regulators and the reserve bank of australia. The flow-of-funds and risk-management functions are performed by both institutions and markets. The settlement function is performed by institutions only. Markets and institutions are both complement and compete with each other. Includes investment banks which operate primarily in wholesale market: Borrow from and lend to large corporations, corporate advisory activities. Main service includes providing loans to small and medium-sized businesses. Raises funds from wholesale markets and retail investors, using debentures and unsecured notes. Main investing institutions in australia are: life insurance companies, Pool money from different investors and invest in a wide range of financial assets. Assets are selected and managed by a professional management company. Investment funds that are considered higher risk (usually not for mum-and-dad. Undertakes a wider more dynamic range of investment and trading activities.
