Financial systems are crucial to the allocation of resources in a modern economy. They channel household savings to the corporate sector and allocate investment funds among firms; they allow intertemporal smoothing of consumption by households and expenditures by firms; and they enable households and firms to share risks. These functions are common to the financial systems of most developed economies. Yet the form of these financial systems varies widely. In the United States and the United Kingdom competitive markets dominate the financial landscape, whereas in France, Germany, and Japan banks have traditionally played the most important role. Consider the statement above and select an element of the Australian financial system, e.g. banks, debt markets, equity markets, foreign exchange markets, superannuation, government regulation. Compare and contrast the selected element with the corresponding element of the financial system of South Korea.