[资本市场和金融机构].9 Risks.ppt
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金融市场与金融机构ppt课件
金融机构在金融市场中的作用
金融机构是金融市场的中介， 连接了资金供给方和需求方， 实现了资金的转移和分配。
金融机构通过提供各种金融产 品和服务，满足了客户的投资 和融资需求，促进了金融市场 的多元化和专业化。
金融机构在金融市场中发挥着 风险管理、信息披露和监督等 作用，提高了市场的透明度和 效率。
金融市场对金融机构的影响
金融市场的规模和结 构影响金融机构的业 务规模和盈利能力。
金融市场的监管政策 影响金融机构的业务 范围和经营模式。
金融市场的利率、汇 率等价格因素影响金 融机构的融资成本和 投资收益。
04
金融市场的全球化
金融市场全球化的趋势
资本流动自由化
随着贸易壁垒的逐步消除，资本 在各国之间的流动更加自由，跨
金融机构的分类
按业务类型
可分为银行业、证券业、 保险业等。
按组织形式
可分为国有金融机构、股 份制金融机构、外资金融 机构等。
按地域范围
可分为全国性金融机构和 区域性金融机构。
金融机构的监管
监管机构
监管手段
各国政府、中央银行、金融监管机构 等。
包括现场检查、非现场检查、信息披 露等。
监管目标
维护金融市场稳定、保护投资者利益、 防止金融风险等。
中介机构
包括银行、证券公司、保险公 司和基金公司等。
监管机构
包括中央银行、证监会、银监 会和保监会等。
02
金融机构概述
金融机构的定义与功能
定义
金融机构是指专门从事金融活动的组 织，包括银行、证券公司、保险公司 等。
功能
金融机构的主要功能是提供金融服务 ，包括吸收存款、发放贷款、买卖证 券等，同时还承担着资金清算、风险 管理等职责。
金融市场与金融风险讲义课件
金融市场与金融风险讲义课件1. 介绍本讲义课件将介绍金融市场和金融风险的基本概念和原理。
金融市场是指用于交易金融资产（如股票、债券、外汇等）的市场，而金融风险是指金融市场中可能导致损失的各种不确定因素。
2. 金融市场2.1. 金融市场的分类金融市场可以根据交易方式和交易对象的不同进行分类。
按交易方式分为现货市场和衍生品市场；按交易对象分为股票市场、债券市场、外汇市场等。
2.2. 现货市场现货市场是指即时交割、即期交易的市场。
在现货市场中，交易的标的物会立即交付给买方，交易双方在交易时就确定买卖价格，并立即进行交易。
2.3. 衍生品市场衍生品市场是指交易金融衍生品的市场。
衍生品是一种根据其他金融资产（如股票、债券、商品等）衍生出来的金融工具，其价值的变动依赖于其他金融资产的变动。
衍生品市场包括期货市场、期权市场和其他衍生品市场。
3.1. 金融风险的分类金融风险可以根据发生原因和性质的不同进行分类。
按发生原因分为内在风险和外在风险；按性质分为市场风险、信用风险、操作风险、流动性风险和法律风险等。
3.2. 市场风险市场风险是指由于金融市场价格波动导致的损失风险。
市场风险包括方向风险（价格朝不利方向变动的风险）和波动率风险（价格波动率增加导致的风险）。
3.3. 信用风险信用风险是指债务人或交易对手无法履约或违约的风险。
当债务人或交易对手无法按时偿还债务或履行交易义务时，可能给金融机构或投资者带来损失。
操作风险是指由于内部失误、违规行为或外部事件导致的损失风险。
操作风险包括人员风险、流程风险和系统风险等。
3.5. 流动性风险流动性风险是指无法迅速买入或卖出金融资产，或者以不利价格迅速完成交易的风险。
当市场上缺乏足够的买方或卖方时，交易可能变得困难，导致价格波动或无法完成交易。
3.6. 法律风险法律风险是指由于法律规定、合同约定或司法判决等原因导致的损失风险。
法律风险包括合同纠纷、知识产权纠纷和法律监管风险等。
[资本市场和金融机构].729页PPT
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CNSX. Canadian National Stock Exchange: 48 issues with Market capitalization above C$1 billion)
3
Toronto Stock Exchange Volume and Transactions (2019-2019)
F irm
R B C D om inion S e c u ritie s C IB C W orld M arkets T D Securities
A m ount A cquisition ($m illions)
$3,7rdson G reenshields, 1996
3,521.0 W ood G undy, 1988
2,215.0 M arathon B rokerage, 1993
Scotia C apital
2,210.0 M cL eod, Y oung, W eir, 1987
B M O N esbitt B urns N ational B ank F in a n c ia l
Firm (ID) BMO Nesbitt Burns Inc CIBC World Markets Inc National Bank Financial Inc RBC Capital Markets Scotia Capital Inc TD Securities Inc
Majority owner Bank of Montreal CIBC National Bank of Canada Royal Bank of Canada
Montreal Exchange (ME). Derivatives:stock index options, bond futures and stock options (e.g. 161 options on stocks May 2009.
3
Toronto Stock Exchange Volume and Transactions (2019-2019)
F irm
R B C D om inion S e c u ritie s C IB C W orld M arkets T D Securities
A m ount A cquisition ($m illions)
$3,7rdson G reenshields, 1996
3,521.0 W ood G undy, 1988
2,215.0 M arathon B rokerage, 1993
Scotia C apital
2,210.0 M cL eod, Y oung, W eir, 1987
B M O N esbitt B urns N ational B ank F in a n c ia l
Firm (ID) BMO Nesbitt Burns Inc CIBC World Markets Inc National Bank Financial Inc RBC Capital Markets Scotia Capital Inc TD Securities Inc
Majority owner Bank of Montreal CIBC National Bank of Canada Royal Bank of Canada
Montreal Exchange (ME). Derivatives:stock index options, bond futures and stock options (e.g. 161 options on stocks May 2009.
资本市场和金融机构9-PPT精品文档16页
Liabilities (Deposits at 9%)
0
1 year
2 years
Assets (Loans at 10%)
0
1 year
2n) Refinancing risk
– The risk that the cost re-borrowing funds will rise above the originally estimated cost of borrowing
The risk that the promised cash flows from loans and securities held by FIs may not be paid in full
Interest rate risk is the potential impact on an FI’s earnings and market value of equity of changes in interest rates
– This risk is incurred by an FI when the maturities of its assets and liabilities are mismatched.
Example: 2-year loans at 10% annual funded with 1-year deposits at 9%
Profit spread 1st year = 10% - 9% = +1%. 2nd year: 10% - ??
0
1
Liabilities
(Deposits at 9%)
2nd year i = ? i= 8%
i= 11%
0
1-year
金融市场和金融机构培训课件
金融市场和金融机构培训课件1. 介绍金融市场是指进行金融交易的场所和平台，金融机构则是负责提供金融服务的实体。
本课程将介绍金融市场的基本概念和分类，并重点介绍各种金融机构的角色和功能。
2. 金融市场2.1 金融市场概述金融市场是指投资者进行金融交易的场所和平台。
金融市场的发展有助于提高资源配置效率，促进经济的发展。
金融市场主要分为货币市场和资本市场。
货币市场是指短期债务债券的交易市场。
货币市场的特点是交易品种流动性好、期限较短、风险较低。
货币市场的主要参与者包括商业银行、政府机构和其他金融机构。
2.3 资本市场资本市场是指长期债务和股权资本的交易市场。
资本市场的特点是交易品种期限较长、风险较高、回报较高。
资本市场的主要参与者包括证券公司、基金公司和其他金融机构。
3. 金融机构3.1 商业银行商业银行是指经营存款、贷款和支付结算等业务的金融机构。
商业银行的主要功能包括资金融通、支付结算和信用中介。
商业银行的经营模式包括传统型和创新型。
证券公司是指经营证券交易和承销业务的金融机构。
证券公司的主要功能包括证券经纪、证券承销和投资咨询。
证券公司的经营模式包括自营和代客。
3.3 基金公司基金公司是指管理和运营证券投资基金的金融机构。
基金公司的主要功能包括基金募集、基金投资和基金运营。
基金公司的经营模式包括开放式和封闭式。
3.4 保险公司保险公司是指提供保险产品和服务的金融机构。
保险公司的主要功能包括风险分担、保险赔付和资金管理。
保险公司的经营模式包括人身保险和财产保险。
3.5 其他金融机构除了商业银行、证券公司和基金公司以外，还有一些其他类型的金融机构，如信托公司、租赁公司和担保公司。
这些机构在金融市场中发挥着重要的作用。
4. 金融市场和金融机构的关系金融市场和金融机构相互依存、相互制约。
金融机构是金融市场的参与者和服务提供者，而金融市场则为金融机构提供融资和投资的渠道。
金融市场和金融机构的稳定和健康发展对于经济的发展和社会的稳定具有重要意义。
[资本市场和金融机构].3-11页PPT资料
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Money supply
Interest rates
Lender of last resort
[An important reason for having a central bank is the need for a lender of last resort to
prevent systemic financial crises. Banks are more prone to crises than other businesses because their assets are largely long-term, whereas their liabilities (deposits) can be withdrawn on demand.]
Main objective: To determine monetary policy aimed at achieving and maintaining price stability.
Decisions are influenced by market (and non market) participants
1
6.1 Central Banks
Government authorities in charge of the monetary policy (Management of interest rates and money supply)
Importance of Central Banks
Amount of credit
3. Central Banking Services
– Lender of last resort to prevent bank runs and panics
第九章 资本市场《金融学》PPT课件
■ 分类
（1）按照在存续期内基金份额是否可以变动 a.闭式证券投资基金 b.开放式证券投资基金
（2）按照证券投资基金投资目标的差异 a.股权基金 b.债券基金 c.混合基金
（3）按照基金投资所承担的风险差异 a.成长型基金 b.收益型基金 c.平衡基金
§9.3长期资本市场工具的发行与交易
9.3.1长期资本市场工具的发行：股票与债券
■ 存托凭证
存托凭证是指在一国证券市场上流通的、代表 外国公司的股票。全球最著名的存托凭证是ADR，即 美国存托凭证。
9.2.3 证券投资基金
■ 定义
证券投资基金是将分散的小额资金集中起来，组 成规模较大的资金，然后投资于各类有价证券。
■ 特点
收益共享，风险共担。
■ 分类
a.闭式证券投资基金 b.开放式证券投资基金
（3）基金指数
9.3.4 互助基金的购买与变现
（1）封闭式基金 只要是在上海和深圳证券交易所开市的时间里，
就可以实现封闭式基金的购买或者卖出。
（2）开放式基金 除了上市开放式基金外，大部分开放式基金是不能
交易的。一般而言，开放式基金是按金额申购、按份 额赎回的。
§9.4 债券市场
9.4.1 债券的一级市场
■ 股票市场和中长期债券市场
（2）中长期债券市场 按照债券发行人的不同：
a.中长期国债市场、 b.企业债券或公司债券市场、 c.金融债券市场 按照债券合约条款的差异： a.普通债券市场 b.可转换债券市场 c.混合资本债券市场
§9.2 长期资本市场工具
9.2.1 债券
■ 定义
债券是代表债权债务关系的一种凭证，债券的持 有者称为债权人，债券的发行者称为债务人。
■ 债券类别
资本市场和金融机构2共39页文档
What determines the demand for loanable funds? It comes from:
consumers who wish to consume more today than tomorrow, individuals, financial and non-financial firms to invest in financial assets financial and non-financial firms to invest in real assets
Eurodollars charge each other for large loans. Fixed rates, floating rates, etc.
They differ because of the differences in maturity, risk of lenders …
10
6. Predictive Power of the Yield Curve
1.
6.1 Future interest rates
2.
6.2 Economic growth
7. Conclusions
1
1. Interest Rate (i)
i = Cost of borrowing or lending money
Interest Rate D
S ’
Q
Quantity ($)
7
b) An increase of the government deficit.
i
D’
D
S
B
A
Q ($)
C) Rise in expected inflation shifts the demand curve to the right.
consumers who wish to consume more today than tomorrow, individuals, financial and non-financial firms to invest in financial assets financial and non-financial firms to invest in real assets
Eurodollars charge each other for large loans. Fixed rates, floating rates, etc.
They differ because of the differences in maturity, risk of lenders …
10
6. Predictive Power of the Yield Curve
1.
6.1 Future interest rates
2.
6.2 Economic growth
7. Conclusions
1
1. Interest Rate (i)
i = Cost of borrowing or lending money
Interest Rate D
S ’
Q
Quantity ($)
7
b) An increase of the government deficit.
i
D’
D
S
B
A
Q ($)
C) Rise in expected inflation shifts the demand curve to the right.
金融市场与金融机构英文课件ppt.ppt
─ Mutual Savings Banks ─ Savings and Loan Associations ─ Savings and Loans in Trouble: The Thrift Crisis ─ Political Economy of the Savings and Loan Crisis
篮球比赛是根据运动队在规定的比赛 时间里 得分多 少来决 定胜负 的，因 此，篮 球比赛 的计时 计分系 统是一 种得分 类型的 系统ຫໍສະໝຸດ Chapter Preview
Consumer banking was almost non-existent in the early 1800s. Commercial banks were common, but their business was primarily restricted to commercial loans and services. But, in the late 1800s, a new type of institution opened—the savings and loan association. This is the topic of chapter 25.
Mutual Savings Banks
▪ Depositors are the owners of the firm
▪ Stock in the bank is not sold or issued, but rather depositors own a share of the bank in proportion to their deposits
© 2012 Pearson Education. All rights reserved.
篮球比赛是根据运动队在规定的比赛 时间里 得分多 少来决 定胜负 的，因 此，篮 球比赛 的计时 计分系 统是一 种得分 类型的 系统ຫໍສະໝຸດ Chapter Preview
Consumer banking was almost non-existent in the early 1800s. Commercial banks were common, but their business was primarily restricted to commercial loans and services. But, in the late 1800s, a new type of institution opened—the savings and loan association. This is the topic of chapter 25.
Mutual Savings Banks
▪ Depositors are the owners of the firm
▪ Stock in the bank is not sold or issued, but rather depositors own a share of the bank in proportion to their deposits
© 2012 Pearson Education. All rights reserved.
[资本市场和金融机构].729页PPT
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Firm (ID) BMO Nesbitt Burns Inc CIBC World Markets Inc National Bank Financial Inc RBC Capital Markets Scotia Capital Inc TD Securities Inc
*2019, all others 2019
1 ,1 4 8 .9 * 9 9 0 .2
N esbitt T hom son, 1987 Burns Fry, 1994 L evesque B eaubien G eoffrion, 1988, First M arathon Securities, 1993
1
1. Securities Firms
Also called investment dealers (Canada) Main functions:
1. Help issuers raise funds by selling debt, equity, and derivative securities directly to ultimate investors (investment banking)
Transaction settled in 3 days
1
Order
Order
Commission
or
2 Shares
Floor Broker
Shares
Market Maker
(Specialist)
Cash
3
Cash
Cash
2. Internet trading. The trades goes directly to the Floor Broker
金融市场与金融风险讲义课件
社会信用体系
信用法律体系 个人征信系统 企业征信系统 信用评级体系 信用担保体系 信用监管体系
信用教育与培训
第二章 金融市场的流动性功能与风险
第一节 流动性的概念 第二节 融资流动性及其风险 第三节 市场流动性及其风险
路漫漫其悠远
第一节 流动性的概念
流动性一般指金融资产变现的能力，或指在保 持价格基本稳定的情况下达成交易的速度，或 是指市场参与者以市场价格成交的可能性。
特指金融市场上产生信贷风险的潜在借款人， 往往就是那些最积极寻找贷款，并最有可能得 到贷款的人
路漫漫其悠远
“逆向选择”和“道德风险”
道德风险（moral hazard）：是由于信息不对 称在交易发生之后所引发的问题。金融市场的 道德风险是指借款者可能从事一些贷款者的角 度来看对其不利（不道德）的活动，因为这些 活动很可能会使这笔贷款无法偿还。
路漫漫其悠远
第二节 融资流动性及其风险
金融机构的资金来源和资金运用 特征：负债经营→借短贷长→借新还旧 麦道夫案例和庞兹骗局
路漫漫其悠远
Hale Waihona Puke 第三节 市场流动性及其风险
突出表现为金融动荡和金融危机 1907年美国的金融危机与摩根
次贷危机→流动性危机
为什么金融市场的流动性会过剩？ 为什么金融市场的流动性会紧缩甚至骤停？
供求变化→价格变化和供求量的变化→资源配 置效益（效率）的变化 信息与金融市场的价格发现功能 信息决定了金融资源配置的效率
路漫漫其悠远
信息决定金融市场的效率
什么是有效的金融市场？ 今年诺贝尔经济学奖得主之一尤金.法码提出有
效市场假说 有效市场假说表明，所有有关股票、债券和其
它金融资产的市场价值的信息都将被用来评估 （定价）这些资产的价值。一个有效的市场不 会浪费或漏用信息，如果一个市场的信息越充 分越有效，则这个市场的效率就越高。
[资本市场和金融机构].4-39页PPT资料
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of Canadian Payments Association (CPA).
↑ in Government Securities by BofC and Advances to Banks lead to ↑ in reserves (settlement balances of banks) that lead to ↑ in Money Supply
money supply – Our main topic.
3
Monetary Liabilities: Monetary Base
a) Notes in circulation: Currency (not included coins)
held by public and depositary institutions
5
Example of open market operation: Purchase $100 of gov’t sec
1)
Non-bank Public (Client)
Assets
Liabilities
Securities
-$100
Chequable deposits +$100
2)
Banking System (e.g., CIBC)
Assets
Liabilities
Settlement balances +$100
Chequable deposits +$100
(component of money supply)
3)
Central Bank
Assets
Liabilities
Securities +$100 Settlement Balances +$100
↑ in Government Securities by BofC and Advances to Banks lead to ↑ in reserves (settlement balances of banks) that lead to ↑ in Money Supply
money supply – Our main topic.
3
Monetary Liabilities: Monetary Base
a) Notes in circulation: Currency (not included coins)
held by public and depositary institutions
5
Example of open market operation: Purchase $100 of gov’t sec
1)
Non-bank Public (Client)
Assets
Liabilities
Securities
-$100
Chequable deposits +$100
2)
Banking System (e.g., CIBC)
Assets
Liabilities
Settlement balances +$100
Chequable deposits +$100
(component of money supply)
3)
Central Bank
Assets
Liabilities
Securities +$100 Settlement Balances +$100
资本市场和金融机构优秀课件
Long Term Capital Management collapse (1998)
LTCM wanted to take advantage of unusual spreads between bond prices
Corporate bonds and T-bonds usually follow systematic pattern Then their prices start to diverge LTCM sees this as a mispricing: Sells short T-bonds and buys long Corp bonds However, the opposite occurred: the spread between the prices of Tbonds and Corp. bonds increased!
8
Decreases in interest rates a big problem for Private Pension Funds
Why many Canadian Private Sponsored funds (Defined-Benefit Plans) are currently under funded? (or en deficit., i.e., the fund does not have enough assets to meet all obligations, or payments to retirees, if it was dismantled now)
A pension liability is the amount of money that must be set aside in a plan to meet future payments. If interest rates fall, it is assumed that the money would generate less income between now and the time it has to be paid out to retirees, sometimes decades into the future.
LTCM wanted to take advantage of unusual spreads between bond prices
Corporate bonds and T-bonds usually follow systematic pattern Then their prices start to diverge LTCM sees this as a mispricing: Sells short T-bonds and buys long Corp bonds However, the opposite occurred: the spread between the prices of Tbonds and Corp. bonds increased!
8
Decreases in interest rates a big problem for Private Pension Funds
Why many Canadian Private Sponsored funds (Defined-Benefit Plans) are currently under funded? (or en deficit., i.e., the fund does not have enough assets to meet all obligations, or payments to retirees, if it was dismantled now)
A pension liability is the amount of money that must be set aside in a plan to meet future payments. If interest rates fall, it is assumed that the money would generate less income between now and the time it has to be paid out to retirees, sometimes decades into the future.
资本市场和金融机构2-39页PPT文档资料
6. Predictive Power of the Yield Curve
1.
6.1 Future interest rates
2.
6.2 Economic growth
7. Conclusions
1
1. Interest Rate (i)
i = Cost of borrowing or lending money
Interest Rates
1. Definition
2. Fluctuation of interest rates
Shifts on Demand
Shifts on Supply
3. Types of interest rates
4. Analysis of Bond Valuation
5. Risk and Term Structure of Interest Rates (TSIR)
What determines the demand for loanable funds? It comes from:
consumers who wish to consume more today than tomorrow, individuals, financial and non-financial firms to invest in financial assets financial and non-financial firms to invest in real assets
What might cause the supply or demand for loanable funds to shift, and how would that affect interest rates?
资本市场和金融机构1-1-20页PPT精品文档
Money Market. Short term debt instruments
Maturity of securities <1 year • E.g., commercial paper, T-bills
Capital Markets
Maturity of securities >1 year • Debt Markets (Government Securities Market, Municipal Bond Markets, Corporate Debt Markets) • Stock Market (TSX), Depositary Receipts Market
Example: BCE needs to finance a $400 million telecom project. It can get the money via:
A) Financial Markets by borrowing directly from investors (e.g.,households)
Brokers. Match buyers and sellers for a fee. Dealers. Sell and buy securities from buyers and sellers.
7
Types of secondary markets
1. Exchange Market
This is facilitated by Financial Markets and Financial Institutions
4
2. Financial Markets
Markets where parties buy and sell financial instruments including stocks, bonds, options, foreign exchange contracts.
Maturity of securities <1 year • E.g., commercial paper, T-bills
Capital Markets
Maturity of securities >1 year • Debt Markets (Government Securities Market, Municipal Bond Markets, Corporate Debt Markets) • Stock Market (TSX), Depositary Receipts Market
Example: BCE needs to finance a $400 million telecom project. It can get the money via:
A) Financial Markets by borrowing directly from investors (e.g.,households)
Brokers. Match buyers and sellers for a fee. Dealers. Sell and buy securities from buyers and sellers.
7
Types of secondary markets
1. Exchange Market
This is facilitated by Financial Markets and Financial Institutions
4
2. Financial Markets
Markets where parties buy and sell financial instruments including stocks, bonds, options, foreign exchange contracts.
资本市场和金融机构5-21页PPT精选文档
4
The Banks
Six L argest B anks in C anada
T h e top six b an k s accou n t for 90% of assets in the b an k in g in d u stry .
A ssets ($ b illion s)
400
360
350
300
250
200
150
100
50 Royal B ank
288
TD B ank
287
284
239
76
C IB C
S c o tia B a n k B a n k o f M ontrea l
N a tio na l B ank
Source: D epartm ent of Finance C anada - 2002 15
Bank
Primary Focus Int’l Assets
(C$ billions)
BofM
U.S., Mexico
112
CIBC
U.S.
108
B of NS
South America, U.S. 139
TD Canada Trust U.S.
99
Royal Bank Europe, Asia
189
THE FINANCIAL SERVICES SECTOR IN CANADA: Deposit Taking Institutions (DTI)
(Based on Chapter 2of the Textbook by Saunders, Cornett and McGraw)
Outline
The Banks
Six L argest B anks in C anada
T h e top six b an k s accou n t for 90% of assets in the b an k in g in d u stry .
A ssets ($ b illion s)
400
360
350
300
250
200
150
100
50 Royal B ank
288
TD B ank
287
284
239
76
C IB C
S c o tia B a n k B a n k o f M ontrea l
N a tio na l B ank
Source: D epartm ent of Finance C anada - 2002 15
Bank
Primary Focus Int’l Assets
(C$ billions)
BofM
U.S., Mexico
112
CIBC
U.S.
108
B of NS
South America, U.S. 139
TD Canada Trust U.S.
99
Royal Bank Europe, Asia
189
THE FINANCIAL SERVICES SECTOR IN CANADA: Deposit Taking Institutions (DTI)
(Based on Chapter 2of the Textbook by Saunders, Cornett and McGraw)
Outline
资本市场和金融机构1-219页PPT
Thus, ↓ information asymmetry ↓costs
Transaction costs
Economies of scale. FIs have the resources to
trade large volume of transactions such as the transaction cost per unit is highly reduced.
8
5. Financial Innovation
Driving factors/events of financial innovation High volatility in price indices, i’s, FX rate, share prices,
commodity prices Government Regulations Globalization Technological advances Market crises
Balance Sheet of a NonFinancial firm (e.g., BCE)
Assets
Real Assets (Plant, Machinery)
Liabilities
Primary Securities (Debt, Equity)
Balance Sheet of an FI
mergers (domestic)
11
2. To protect investors from illegal or unethical practices from FI and non-FIs. Provincial Securities Commissions, TSX, ME, ↓ Asymmetric Information
Transaction costs
Economies of scale. FIs have the resources to
trade large volume of transactions such as the transaction cost per unit is highly reduced.
8
5. Financial Innovation
Driving factors/events of financial innovation High volatility in price indices, i’s, FX rate, share prices,
commodity prices Government Regulations Globalization Technological advances Market crises
Balance Sheet of a NonFinancial firm (e.g., BCE)
Assets
Real Assets (Plant, Machinery)
Liabilities
Primary Securities (Debt, Equity)
Balance Sheet of an FI
mergers (domestic)
11
2. To protect investors from illegal or unethical practices from FI and non-FIs. Provincial Securities Commissions, TSX, ME, ↓ Asymmetric Information