financial sector

financial sector

that part of the ECONOMY that is concerned with the transactions of FINANCIAL INSTITUTIONS. Financial institutions provide money transmission services and loan facilities, and influence the workings of the ‘real’ economy by acting as intermediaries in channelling SAVINGS and other funds into INVESTMENT uses. The financial sector, together with the CORPORATE SECTOR and PERSONAL SECTOR, constitute the PRIVATE SECTOR. The private sector, PUBLIC (GOVERNMENT) SECTOR and FOREIGN SECTOR make up the national economy. See FINANCIAL SYSTEM.
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