As a starting point, the text reviews the concepts of intermediation and credit creation and examines how financial markets are structured. There is a focus on the functions and characteristics of key institutions and markets, how they operate and how competition acts as a pricing mechanism. It then moves towards deepening students' understanding of the monetary system and looks in some detail at the ways in which monetary and fiscal policy are used as key instruments in economic management. The need for regulation of financial institutions and markets is considered next, covering relevant legal provisions in respect of consumer protection, voluntary codes of practice, capital adequacy and liquidity requirements. Finally, these themes are drawn together with various social, ethical, demographic and technological issues that act as important external influences on the financial services industry.