Dear Members, I would like us to discuss a little bit on Financial sector. Through observation made it seems financial sector is one of the area the world faces as a challenge. Therefore, What is the future of global finance?
The global financial crisis shook both the financial system and the public’s confidence in it. In its wake, there has been closer scrutiny of the financial system and debate over the role regulation has to play and how extensive it should be. It is a debate that will help shape the future of the financial system along with other significant challenges such as enabling more inclusive growth and the effect technology is having on the way financial services can be delivered and used.
What impact has the financial crisis had?
The global financial crisis revealed significant weaknesses in the financial system and some of the vulnerabilities that can result from having such an interconnected global market.
Several years after the crisis, the world economy is still struggling with slow growth, unconventional monetary policy in major economies, and constrained government budgets. It is vital that we find ways of making the financial system more resilient and able to withstand shocks in the market.
The crisis also caused a significant drop in levels of public trust and confidence in financial institutions. To function efficiently, the system needs to re-establish that trust.
Why does the system need to change?
As well as restoring public trust and improving resilience, there is an urgent need to allow more people to access the financial system.
Amid increasing concerns about rising income inequality and its negative economic and social impact, there is no bigger policy challenge preoccupying political leaders than expanding social participation in the process and benefits of economic growth.
Providing access to credit and savings is a major challenge in the battle against global poverty—yet two billion people do not have access to high-quality, affordable financial services. Additionally, there are 200 million small and medium-sized enterprises worldwide that have no access to formal financial services.
Welcome all for more contribution on this matter.
Thanks.
