Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 66

Take, for instance, the case of ICICI Bank, which is India's second largest bank. It is a traditional commercial bank on the one hand, in the sense that it accepts deposits from the public and makes loans. It has, however, an Asset Management Company that manages mutual funds in collaboration with Prudential Plc. ICICI Prudential is into Life Insurance. ICICI Lombard is into General Insurance. ICICI Home Finance is a subsidiary that makes real estate loans.

Constant product and process innovations are a major feature of the modern financial market. Innovations have manifested themselves in two forms: (1) many new products have been created and (2) new methods have been devised to facilitate the transfer of risks.

Of course, none of the observed advances in global markets would have been feasible without the developments in telecommunications, computer hardware, and software that we have witnessed in the recent past. They have helped develop systems where links can be instantly established, and funds and securities can be transferred safely and quickly. Companies like Bloomberg now provide round-the-clock access to prices and news from financial centers round the world. Most exchanges are now fully automated and electronic.

Today's markets are also characterized by the increasing sophistication of investors and borrowers. Multinational corporations and, surprisingly, even governments have become more sophisticated. Corporate treasurers, fund managers, and bureaucrats are highly educated and aware. Today's markets also tend to be largely dominated by institutions. These giants can take advantage of economies of scale worldwide. They can also afford to employ large teams of highly qualified experts.