A financial system plays a vital role in the economic growth of a country. It intermediates with with the flow of funds between those who save a part of their income to those who invest in productive assets. It mobilizes and usefully allocate scarce resources of a country.

A financial system is a complex, well-integrated set of sub-systems of financial institutions, markets, instruments, and services which facilitates the transfer and allocation of funds, efficiently  and effectively

There are four main components of financial system they are:

FINANCIAL INSTITUTIONS

FINANCIAL MARKETS

FINANCIAL INSTRUMENTS

FINANCIAL SERVICES