Money Markets vs Capital Markets Essay

The food market where legal proceeding of bullion and financial pluss are accomplished for short time is called money market. On the other end, hood market is meant that market where transactions of money and financial assets are occurred for a long period. * Institutions Important institutions operating in the money market are central banks, mercantile banks, acceptance houses,non bankfinancial institutions, bill brokers. Important institutions of the crownwork market are stock exchanges, commercial banks and non bank institutions, such as insurance companies, owe banks, building societies. Transactions 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 divers ity 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, treasury 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 required in money market therefore, transactions apostrophize 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. * Relation with Government Agency The money market is closely and directly linked with central bank of the country.The capital market feels Securities and Exchange Commission (SEC) as well as central banks influence, but mainly indirectly and through the money market. Customer-centric bloodline Model * Grow a ssets under management with real-time analysis of node activity and personalized interaction * Measure and report on the state of customer relationships and profitability in real time with business analytics * Personalize customer experience across channels * Capture investment profiles to target offers and leads, while trim back sales cycles and increasing investment offers EffectiveRisk Management * Handle compliance issues, regulatory requirements, security, and other operational risks without burdening existing operations * Provide real-time and near real-time actionable customer and harvest-feast profitability insight, delivered to the front office * Manage security exposure, market, and operations risk * Support centralized and coherent capture of regulatory data for MiFID and KYC requirements Operational Effectiveness * Streamline project management, simplify procurement, and make the most your firms most important assetemployees * Reduce operational risk with end-to-end financial management * Manage projects more efficiently and effectively * Transform corporate procurement with strategic sourcing capabilities Next-generation serve * Evolve to an agile, intelligent, and secure platform * Increase competitiveness by enabling new, intelligent services, while consolidating legacy systems * Enable 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 report with enterprise security and identity management * Selectively consolidate legacy systems onto an open-standard platform with enterprise grid computing and content management