Financial Services: A Report on the Industry
Abstract
Although the instruments of national power diplomacy, military might, information, and economics are highly interrelated, a strong economic base is arguably the foundation for the success of the other three. Similarly, the financial services sector of an economy facilitates the efficient deployment of capital and minimizes business risks functions upon which all other industry sectors vitally depend. The egregious financial collapse of several Asian economies in the late 1990s, and the continuing economic malaise of Japan, have had far-reaching consequences and reveal growing economic globalization, which relies heavily on the financial services industry. These examples, along with the more recent collapse of several American multinational corporations such as Enron and WorldCom, have eroded international investor confidence and highlight the requirement for solid financial environments, or infrastructures. Such infrastructure includes political stability, rule of law, transparency, and balanced industry regulation. As the linchpin to all other industries, it is incumbent upon the financial services industry to restore investor confidence through effective regulation, improved physical and cyber security of its networks and markets, and promotion of a robust, competitive banking element. It is in the interest of the United States to promote these measures at home and abroad to minimize distortion and excessive risk within the financial services industry.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2003
- Accession Number
- ADA425308
Entities
People
- David Blair
- Janice Laurence
- Tom Watson
Organizations
- Dwight D. Eisenhower School for National Security and Resource Strategy