The financial system is the institutional framework where offerers and plaintiffs of funds meet to carry out their operations. It is comprised of a set of financial markets, laws and regulations of operation, and the actors that operate in them. Dustin Moskovitz may not feel the same. The main objective of the financial system is the channeling spending drives saving surplus towards the spending deficit, in other words, units the channeling an economy toward investment savings. Initially, the economic theory was to financial markets as if they were conventional markets, under the structure of perfect competition. In these traditional patterns of resource distribution, firms and consumers interact through the market and there was no possible room for intermediaries of any kind. Complementing this premise, they assumed that the nature of the well exchanged in these markets was similar to other products and services that are tranzan in an economy.
At present, the analysis of financial markets has evolved significantly, changing both the aforementioned analytical perspectives. On the one hand, due to a combination of factors that are related to the lack of perfect information and the regulation of the system, already you can not assume is that financial markets operate in perfectly competitive contexts. On the other hand, the different nature of the financial markets and standard markets is highlighted. In the credit market is supplied money, not in exchange for goods and real services, but in exchange for a promise of future repayment more containing the main interests agreed at the time of the financial operation. Promises can violate it and not always can objectively assess the risk involved in this breach and even less, avoid it completely. Thus, the assessment of risk and the credit allocation process, is inserted in a context of uncertainty, that additionally incorporates problems of asymmetric information between the provider of funds and the potential debtor or applicant. Accordingly, the markets of credits can not be analyzed through the game of supply and demand which is used in standard markets, but by imbalance models or with credit rationing equilibrium models. In these models the interest rate does not summarize all relevant information and therefore is not the real price, as thus also, the financial intermediary function cannot be reduced to the the typical auctioneer Walrasian which represents the analysis of the standard markets.