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Financial Sector Essay

1499 Words6 Pages

The financial sector consists of institutions, like the bank, insurance companies, stock brokerages and real estate that accommodate financial services to the final user. They provide money and investment related services. Revenue generated is largely from mortgages and loans. To regulate and stimulate spending in the economy, interest rates have to be low to encourage customers to take loans and mortgages. When the economy is improving or is experiencing better economic conditions, the financial sector benefits from the additional investment. The new projects require financing which usually leads to a larger number of loans.

The banking sector is a subset of the financial service sector. Some banks offer both financial services and financial …show more content…

Singapore's financial centre offers a broad range of financial services. It serves the wider Asia-Pacific region and the world. The sector is attractive to foreign investment. It is a hub for trading, has many tourist attractions, an excellent infrastructure, cost competitiveness and a business friendly environment. The banking and finance sector is well established with good corporate governance practices and also offers one of the lowest corporate tax rates in Asia- Pacific of 17% as of 2013.
The financial service sector continues attempting to grow despite the risks and pressure of customer demands growing. They make every effort to become more innovative. Tough competition has forced companies to cut cost while improving quality of their service. Risks increase as the products become more complex. Regulations become tighter and there is government pressure. Those companies that are able to turn these challenges into opportunities will succeed. The financial service sector is a strong economic force; they can influence other industries’ success and standard. This is because financial services are used for all purposes be it individual or institutions. Therefore, there are many companies working with these organizations to develop sound networking strategy for connecting companies with customers, suppliers and employees. Businesses and economy as a whole has a direct impact on the way businesses …show more content…

They ensure that Singapore’s financial economy stays responsive, competitive and the institutions follow international accounting standards. They promote a strong corporate governance framework and continuous economic growth by implementing policies and surveillance. MAS manages Singapore’s exchange rate, foreign reserves and maintain liquidity in the banking sector. MAS supervisors all activities in financial institutions like banks, stock exchanges and financial advisors in

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