Compare Australia's and Hong Kong's financial system - types of Essay

equal Australias and Hong Kongs monetary system - types of financial products & services, grandness of banks vs stock exch - Essay ExampleTo begin with, Barnett et al. (2013) stated that Hong Kong and Australias financial firmament bears some form of great similarities and a few insignificant differences, this is affirmed by the fact that various international banks such as Citibank operates in both(prenominal) countries thereby alluding to similarity in business operations and environment in both countries. Financial products and services in both countries ar classified into personal and business categories (Viney and Phillips, 2012). Under both the personal and business categories, banks in both Australia and Hong Kong whirl the depository and custodial services, whereby they accept deposits from customers and even grant them safe custody keeping for their valuable items. Secondly, the banks in these two countries also specialize in providing financial advice to the individua l and business customers on matters to do with the banking, different investments, as salubrious as insurance. Thirdly, these banks supply insurance services to their customers but it is important to note that most banks in Hong Kong have a subsidiary that specialize in offering insurance services. Fourthly, these banks also offer the services of mobile banking, which enable customers to do transactions from their mobile phones. The common products offered by banks in both countries to individuals and business are the provision of lending or credit facilities to the customers. The other key common products offered by the banks in both countries are credit and debit cards that allow business as well as individual customers to make payments without using liquid cash. Other products are cheque books, and travelers cheque. Relative importance of banks versus stock exchange as the source of industrial financing According to Siciliano (2003), banks as well as the stock exchange provide a source for industrial financing. In particular, banks issue industrial financing in the form of loans or overdrafts while the stock exchange provide for industrial financing through the selling of a companys shares, which in turn earns the company additional capital for investments. The financial sector, which encompass the banking sector and the stock exchange in both Australia and Hong Kong are vibrant but Kelley et al (2008) noted that Hong Kongs banking sector could be considered more vibrant since because Hong Kong is renowned an international banking center. Moreover, it plays host to many financial international financial institutions such as the Hong Kong and Shanghai Banking Corporation. Additionally, Hong Kong has more than 156 licensed banks, 21 restricted banks, and 24 deposit-taking companies, and 61 representative offices of overseas banking institutions while Australia has only 56 banks, 103 credit unions, and 10 construction societies (Australia Prudential Auth ority, 2011). This therefore core that the banks play a key role in the financial sector of Hong Kong and there is a relative importance of banks as the main source of industrial financing in the region as compared to Australia. Moreover, Genberg and Hui (2008) stated that Hong Kong has three different tiers of banking institutions that include licensed banks, restricted license bank, and deposit-taking companies, which means there is a wide variety of financing options from banks in Hong Kong that perhaps suit the needs of for each one kind