A financial system is a network of financial institutions, financial markets, financial instruments and financial services to facilitate the transfer of funds. The firms and institutions that together make it possible for money to make the world go round. This includes financial markets, securities exchanges, banks, pension funds, mutual funds, insurers, national regulators, such as the Securities and Exchange Commission (SEC) in the United States, central banks, governments and multinational institutions, such as the imf and world bank.