Maharishi University of Information Technology

In today’s globalised economy, a well-regulated financial sector is critical.  Financial innovation  has aided in the growth of the economy. A financial institution is a company that offers financial services to its customers or members. Acting as financial intermediaries is probably the most important financial service provided by  financial institutions . The government regulates most financial organizations heavily. For money market purposes, money does not just refer to bank notes, it also refers to a variety of assets that can be converted into cash quickly, such as short-term government securities, bills of exchange, and bankers’ acceptances. In an economy with risk averse savers and learning by loan, this article examines the true consequences of  financial markets  following financial deregulation.  When the initial amount of worthwhile assets known by financial intuitions is insufficient, the transition from full financial repression to full financ...