Finance School of management The Functional Perspective on Financial System financial institutions generally differ across borders and also change over time The functional perspective Financial functions are more stable than financial institutions Institutional form follows function 6 The primary function of financial system is efficient resource allocation uesTc 1212 Finance School of Management The Functional Perspective on Financial System ❖ Financial institutions generally differ across borders and also change over time. ❖ The functional perspective – Financial functions are more stable than financial institutions. – Institutional form follows function. ❖ The primary function of financial system is efficient resource allocation