In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are regulated by the government.
Broadly speaking, there are three major types of financial institutions:
- Depositary Institutions : Deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies
- Contractual Institutions : Insurance companies and pension funds; and
- Investment Institutes : Investment Banks, underwriters, brokerage firms.
Read more about Financial Institution: Function, Standing Settlement Instructions, Regulation
Famous quotes containing the words financial and/or institution:
“For the merchant, even honesty is a financial speculation.”
—Charles Baudelaire (1821–1867)
“Every institution not only carries within it the seeds of its own dissolution, but prepares the way for its most hated rival.”
—W.R. (William Ralph)
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