FINANCIAL PRODUCTS DEVELOPED RECENTLY

FINANCIAL PRODUCTS DEVELOPED RECENTLY

Financial products are securities issued mostly by banks, financial institutions, or the government. They allow a person to borrow or save money or invest it. These products include checking accounts, which would enable withdrawals and deposits, saving accounts, mortgages, auto loans, and others.

As time goes by, new financial products emerge as markets become more developed. These new products enable better resource allocation hence longterm growth prospects. This product development is called financial

. (Manrique et al., 2017,p.1957)

However, these products yield few challenges, such as making money analysis more complicated, which may lead to financial instability. Also, the global financial crisis creates risks to markets and the central bank. Therefore, the central bank should coordinate policies very carefully with other financial institutions on the new financial instruments and inform them of all kinds of effects that come with this development.

Reference List

Manrique, S., and Martí-Ballester, C.P., 2017. Analyzing the effect of corporate environmental performance on organizational financial performance in developed and developing countries. Sustainability, 9(11), p.1957.