Learn Finance With Online Courses, Classes, & Lessons

Credit risk is inherent in the business of banking, but additionally, these institutions are exposed to counterparty credit risk. The financial services sector is one of the most important segments of the economy. It drives a nation’s economy, providing the free flow of capital and liquidity in the marketplace. It is made up of a variety of financial firms, including banks, investment houses, finance companies, insurance companies, lenders, accounting services, and real estate brokers. In Lebanon, the Innovative Small and Medium Enterprises project is a $30 million investment lending operation providing equity co-investments in innovative young firms in addition to a grant funding window for seed stage firms. To date, 60 out of 174 grantees had leveraged the iSME funding to raise a total of $13.1 million from various funding sources, a leverage ratio of 5.3 times.

Understanding Finance

Financial managers—who create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization—have a median pay of $129,890 per year, reflecting the fact that theirs is a fairly senior position. A personal financial advisor'smedianannual compensation is $87,850, according to the latestU.S. Finance, as a field of study and an area of business, definitely has strong roots in related-scientific areas, such as statistics and mathematics. Furthermore, many modern financial theories resemble scientific or mathematical formulas. Scholars have argued that the past few decades have witnessed an unparalleled expansion of financialization—or the role of finance in everyday business or life. Around 3000 BC, banking seems to have originated in the Babylonian/Sumerian empire, where temples and palaces were used as safe places for the storage of financial assets—grain, cattle, and silver or copper ingots.