Financial innovation is much overused term and used to
describe any change in the scale scope and delivery of
financial services.As Gowland(1991)has explained much
of what is thought to be an innovation is the extent ion or
limitation of financial product that already existed in another
country.An example is the introduction of variable rate
mortgages into the USA when fixed rates were in the UK,
where variable rate still remains the dominant types of
mortgage.
It is generally recognized that three common but
not mutually exclusive forces have spurred on financial
innovation.They are1.Instability of the financial environment
2.Regulation3.Development of technology in the financial
sector.
describe any change in the scale scope and delivery of
financial services.As Gowland(1991)has explained much
of what is thought to be an innovation is the extent ion or
limitation of financial product that already existed in another
country.An example is the introduction of variable rate
mortgages into the USA when fixed rates were in the UK,
where variable rate still remains the dominant types of
mortgage.
It is generally recognized that three common but
not mutually exclusive forces have spurred on financial
innovation.They are1.Instability of the financial environment
2.Regulation3.Development of technology in the financial
sector.
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