FINANCIAL INSTITUTIONS
FINANCIAL INSTITUTIONS
DEFINATION
Financial institutions are those institutions that provide the financial services to its customers or clients.
In other words,
Financial institutions are those who collects the funds from general public and than invest it in financial benefits.
INTRODUCTION:
Financial institutions are provided the financial services to the society. Financial institutions provide the loans and collect the funds from general public and invest it into valuable places.
TYPES OF FINANCIAL INSTITUTIONS:
These are the types of financial institutions which are as under,
- Commercial Banks
- Credit Unions
- Stock Broker Firms
- Asset Management Firms
- Insurance Companies
- Finance Companies
- Building Societies
- Retailers
FUNCTIONS OF FINANCIAL INSTITUTIONS:
Financial institutions are responsible for transfer of funds to the finance companies.
Financial institutions collect the deposits from general public.
Financial institutions invest the money in favorable institutions.
Financial institutions are responsible institution of an economy.
Financial institutions are the middle man of the government.
FINANCIAL MARKET:
Financial market is a place where financial assets are traded.
FUNCTIONS OF FINANCIAL MARKET:
There are some basic functions of financial market which are as under,
- Lending and Borrowing
- Determination of Price
- Risk sharing and management
- Liquidity
- Efficiency
Tags: Asset Management Firms, Functions of Financial Institutions, Types of Financial Institutions