Money Markets vs Capital Markets Essay

The commercialise where transactions of money and monetary assets argon accomplished for short time is called money foodstuff. On the other end, outstanding market is meant that market where transactions of money and financial assets atomic number 18 occurred for a long period. * Institutions outstanding institutions operating in the money market atomic number 18 central banks, commercial banks, acceptance houses, non bank financial institutions, bill brokers. Important institutions of the large(p) market are stock exchanges, commercial banks and non bank institutions, such(prenominal) as insurance companies, mortgage banks, building societies. acts Period In money market transactions are accomplished for one or less than one year. While capital market transactions are for long time.* Nature of Credit Instruments The credit instruments dealt with in the capital market are more heterogeneous than those in money market. Some homogeneity of credit instruments is needed for the operation of financial markets. Too much diverseness creates problems for the investors. * Risks Since investment of this market is for a short-term, the risk of money is low. In capital market the risk of money and loan defaulters are high. Instruments Cash dollar, exchequer bills, commercial papers are used as the instrument in money market. On the other end, Shares, debentures, long-term bonds are the instruments of capital market. * Transaction Procedures Since fewer formalities are ask in money market hence, transactions cost is also minimum. While, many formalities are required in making capital market transaction successful and therefore its transaction cost is little bit higher than the money market. * similarity with Government Agency The money market is closely and directly associate with central bank of the country.The capital market feels Securities and Exchange Commission (SEC) as well as central banks influence, but chiefly indirectly and through the mone y market. Customer-centric Business Model * Grow assets chthonic management with real time analysis of client activity and personalized fundamental interaction * Measure and report on the state of customer relationships and profitability in real time with business analytics * Personalize customer experience crossways channels * Capture investment profiles to target offers and leads, while shortening sales cycles and increasing investment offers EffectiveRisk Management * Handle compliance issues, regulatory requirements, credentials, and other operational risks without burdening existing operations * Provide real-time and near real-time actionable customer and product profitability acuteness, delivered to the attend office * Manage security exposure, market, and operations risk * Support centralised and consistent capture of regulatory data for MiFID and KYC requirements Operational Effectiveness * contour project management, simplify procurement, and make the nearly your fi rms most important assetemployees * Reduce operational risk with end-to-end financial management * Manage projects more efficiently and effectively * Transform corporeal procurement with strategic sourcing capabilities Next-generation Services * Evolve to an agile, intelligent, and secure platform * sum up competitiveness by enabling new, intelligent services, while consolidating legacy systems * change new services across product silos with service-enabled processes and applications * Gain real-time insight across channels with business intelligence for capital markets * Secure customer data and access for risk and compliance reporting with enterprise security and identity management * Selectively consolidate legacy systems onto an open-standard platform with enterprise grid computing and content management