Financial institutions help the people in providing funds/money according to the needs and for the establishment purpose of small and large businesses or in other words, we can say that it is an agent providing financial service to the business. There are different types of such institutions like banks, credit unions etc. Their responsibility is to transfer the funds from specific investors to the different companies.
There are various types of financial institutions depending upon the services they offer like Banks, Credit Unions, Insurance Companies, Savings and Loan Associations, Finance Companies, Trust Companies and Mortgage Companies. On the basis of their assets and liabilities financial institutions are classified into three categories. First category of financial institutions include Depository institutions which include Commercial banks, Savings and loans associations, mutual saving funds and credit unions. Second category of financial institutions include Contractual saving institutions which are Life insurance companies, fire and casualty insurance companies, pension funds and government retirement funds. Third category of financial institution is Investment intermediaries. These institutions include finance companies, mutual funds and money market mutual funds.
Financial institutions are businesses that give services for instance checking and saving/current accounts, car/business loans, credit cards and lots more. There are numerous sort of financial institutions like banks, credit unions etc.
Financial institutions roles normally range from overseeing monetary policy to implementing particular objectives for instance currency stability, low inflation and full employment. They also generally act as the government's banker, manage exchange reserves, act as a lender of last resort and so on.
In India Financial Institution are classified into two Category. 1. Banking Financial Institution.
2. Non Banking Financial Institution. 1. Banking financial institution are those who allow to received money from the public, Like, Banks i.e. Allow to deal with public under the RBI guidelines. 2. Non banking Financial Institution are those institutions which are not allow to received money from the public directly as deposit. But they will provide other financial support survives, Like Project financing, Hire purchase Finance, Bill Discounting, generally they deal with organization and their services are Enterprise oriented. They give financial support, advice and other service to Industry.
The agency responsible for regulating the money supply in the United States is
Basically there are two ttypes of financial institutions, they are banking and non-banking institutions
The rise and fall of financial institutions is the responsibility of the management of financial institution