subject: Information about Financial Institutions [print this page] Information about Financial Institutions Information about Financial Institutions
A financial institution is an organizations that provides financial services to their customers. There are rules and regulations that are controlled and supervised by government authorities for financial institutions. Some of the different types of financial institutions are Banks, Non Banking Financial Institutions, Stock Brokerage Firms, Building Societies, Credit Unions, Insurance Companies and Asset Management firms.
The primary functions of financial institutions like banks, savings associations, loan associations, etc. are to accept deposits, provide real estate loans, provide commercial loans, provide mortgage loans, and issue share certificates. They also provide loans, business inventory financing and indirect consumer loans.
Some financial institutions are mediators in the debt security markets and share markets. The principal function of these institutions is to collect the investors funds and direct the funds to various financial service providers in search for those funds. Financial institutions also deal with a variety of financial activities including bonds, debentures, loans, stocks, insurance, risk diversification, planning, portfolio management, and other related functions. With these functions, financial institutions transfer money to various tiers of the economy playing a significant role is the domestic and international economic scenario.
Financial institutions implement different economic models to carry out their business operations. They assist investors and clients to help maximize their profits. Financial institutions also provide a wide range of educational programs to educate investors on investment fundamentals and much more.
Financial institutions can be public or private companies with the most common forms being categorized by Business Finance Company, Mortgage Finance Company, Car Finance Company, Personal Finance Company, Personal Loan Finance Company, Home Finance Company, and Corporate Finance company.
In summary, financial institutions are an institution that collects funds from public and private investors and utilized these funds in financial assets. The function of a financial institution is not limited to a particular country, but they can have impact abroad due to the growing impact of globalization. Learn more about finance and financial questions here.
