Introduction
Due to the increase in economic transactions throughout the world and throughout all time, these have acquired a certain complexity and in turn have required the emergence of new tools that allow such transactions to be carried out by the economic entities that require them.
Finances in our country, both public and private, are constituted through the Mexican Financial System
The financial system is the set of people and organizations, both public and private, through which the financial resources that are negotiated between the various economic agents are captured, administered, regulated and directed, within the framework of the corresponding legislation.
On the other hand, the international financial system is the set of public and private institutions that provide the financial means to the international economy for the development of its activities.
These institutions perform a function of intermediation between the institutions that capture savings and those of investment or expense, mobilizing resources from the former to the latter in order to achieve a more efficient use of resources.
Abstract
Due to increased economic transactions around the world and through all time, they have acquired a certain complexity and in turn has required the emergence of new tools that allow such transactions are carried out by economic entities that require them.
Finance in our country, both public and private, are constituted by the Mexican Financial System
The financial system is the set of people and organizations, both public and private, through which capture, manage, regulate and direct the financial resources that are negotiated between the various economic agents, within the framework of relevant legislation.
On the other hand the international financial system is the set of public and private institutions that provide financial means to the international economy to develop their activities.
These institutions perform an intermediary role between the institutions that collect savings and investment or expense, mobilizing the resources of the first to the second in order to achieve a more efficient use of resources.
The Mexican Financial System
The Mexican financial system is made up of a set of laws, regulations, agencies and institutions that generate, capture, administer, guide and direct, both savings and investment, and financing within a legal framework of reference, in the political context - economic that offers our country.
In the structure of the Mexican Financial System, the highest authority continues to be the Ministry of Finance and Public Credit regarding the stewardship of the system and its oversight through the Special Administration of Fiscal Audit.
Banco de México regulates the operation of the financial system; and the inspection and surveillance corresponds to:
- National Banking and Securities Commission (CNBV). National Commission of Insurance and Bonds. (CNSF) National Commission of the Retirement Savings System. (CONSAR) National Commission for the Defense of Users of Financial Services (CONDUSEF).
Thus, the formation of three large blocks is produced, which are supervised by each of the Commissions respectively, identified as:
- Banking, Financial and Stock Market Organizations, Insurance and Bonding Organizations, and Specialized Retirement Fund Investment Companies (SIEFORE) and Retirement Fund Administrators (AFORE)
International Financial System
Like all commercial activities, international trade needs a good financing system. Apart from the traditional commercial credits granted by the private international financial system, the international economic system that emerged from the year 1945, when the war ended, is basically based on three institutions: the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (World Bank) and the Agreement on Tariffs and Trade (GATT).
In June 1944, the United Nations promoted a conference in Breton Woods, New Hampshire, United States. Representatives from 45 countries responded to the call and agreed to create an economic organization that would allow international collaboration and could avoid repeating the wrong economic policy measures that led to the great depression of the 1930s.
The body created, The International Monetary Fund (IMF), has as its main objective to avoid crises in monetary systems, encouraging countries to adopt well-founded economic policy measures. As the name implies, the institution is also a fund that member countries that need temporary financing can use to overcome balance of payments problems. Another objective is to promote international cooperation on international monetary issues and facilitate the movement of trade through productive capacity.
Since its foundation, the IMF has promoted exchange rate stability and ordered exchange regimes in order to avoid competitive exchange rate depreciations, it has facilitated a multilateral system of payments and transfers for transactions, trying to eliminate the restrictions that hinder the expansion of world trade. It also advises governments and central banks in the development of public accounting systems.
The World Bank is the most important international financial institution. Originally, it had among its functions to contribute credit assistance to the reconstruction of the countries devastated by the Second World War. Today The World Bank is a vital source of financial and technical assistance for developing countries around the world. It is not a bank in the ordinary sense. This international organization is owned by 185 member countries and is made up of unique development institutions: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), International Finance Corporation (IFC), Multilateral Agency for the Guarantee of Investments (MIGA), International Center for Settlement of Investment Disputes (ICSID).Each institution has a different but fundamental function to achieve the mission of reducing poverty in the world and improving people's living standards. IBRD focuses its activities on middle-income countries and poor creditworthy countries, while IDA helps the world's poorest countries. Together they offer low-interest loans, interest-free loans, and grants to developing countries for education, health, infrastructure, communications, and many other projects.Together they offer low-interest loans, interest-free loans, and grants to developing countries for education, health, infrastructure, communications, and many other projects.Together they offer low-interest loans, interest-free loans, and grants to developing countries for education, health, infrastructure, communications, and many other projects.
conclusion
As we see the financial system at present is of vital importance for the economy of any country, since through it all existing financial activities are carried out.
Likewise, we can see that financial systems encompass companies, banks and institutions that satisfy the financial decisions of families, companies and local and international governments.
We can conclude that the financial system is so broad and important that monetary policy is currently the most important tool that a government has to control its economic flow.
Bibliography
- González R. & Arroyo B.. (2010). The Mexican financial market in the context of the global financial crisis. 2014, from Colegio de Contadores Públicos de México Website: www.ccpm.org.mx Banco de México. (2012). The Mexican Financial System. 2014, from the Directorate of Regulation and Supervision Website: http://www.anterior.banxico.org.mx/sistema-financiero/index.htmlAcosta, J.. (2013). International Financial System. 2014, from Universidad Veracruzana Website:
