Author(s): Ana Mler*
Finance is a core component of economic development and institutional stability in modern economies. It supports capital formation, efficient resource allocation, and long-term growth. This article examines the role of finance in economic systems, focusing on financial institutions, markets, investment behavior, risk management, regulation, and sustainability. It also highlights current challenges faced by financial systems in Europe, including globalization, technological change, and economic uncertainty. The study emphasizes that a well-regulated and transparent financial framework is essential for maintaining economic resilience and promoting inclusive growth.