Financial Captial金融资本.pptVIP

* * * * * Financial Capital What is Capital? Capital is any resource capable of producing other resources. Examples of capital include: cars, machines, buildings, land and money. Public and Private Capital Public capital are community resources: schools, roads, utilities, parks. Private capital are individual resources: land, buildings, equipment, money. Financial Capital Financial capital represents resources that are liquid: having the ability to be turned into other assets. Common forms of financial capital are stocks, bonds, market futures, letters of credit and money. Financial capital is extremely mobile today which results in growing problems for rural communities. Availability of Financial Capital Loans: short-term or long-term (bonds) funds borrowed from a financial institute. Stocks: selling shares of a business to obtain financial capital in exchange for dividends and voting rights that determine management controls. The Rise and Fall of Banks 1780’s – 1920’s banks were easy to start due to lack of regulations. During Great Depression, tens of thousands of banks failed. Many were located in rural communities. Federal and State regulation of banks instilled trust in the system and helped insure financial capital would be reinvested into the local communities. Deregulation of banks in 1980’s caused a change in flow of financial capital. Mostly out of rural communities in search of short-term returns. “income multiplier”- tool used to determine to what extent capital is reinvested into a community Maintaining Local Financial Capital Community Reinvestment Act of 1977: aimed at poor urban areas, rural area at this time seemed stable. Brownfields Act in 1995 revised the CRA to target a broader range of “low-to-moderate income communities”. New programs and community foundations are arising to address the financial capital issues for rural communities. The gov’t that Failed? Governments can provide tax concessions to certain investments or