This paper explains an organized and well-planned capital market guarantees that investments are safe and with limited risks;
however, the presence of the money market, the market from which banks borrow or lend finances to each other, cannot be ignored. The author points out that securitization and credit derivatives have resulted in the ability to spread credit risks across different sectors of the
financial system. The paper relates that the health of the global financial system is an issue of major concern to the U.S.A. and to the entire world; therefore, several multinational organizations, such as the World Bank and the International Monetary Fund (IMF), assist countries that are faced with financial problems and developmental requirements.