Horti-Business Management (2+0)

Types of Financial Institutions

• Financial institutions are the firms that provide financial services and advices to its clients. The financial institutions are generally regulated by the financial laws of government authority.
• Various types of Financial Institutions are as follows:
• Commercial banks
• Credit unions
• Stock brokerage firms
• Asset management firms
• Insurance companies
• Finance companies
• Building Societies
• Retailers
• The various financial institutions generally act as the intermediaries between the capital market and debt market. But the service provided by financial institution depends on its type.
• The financial institutions are also responsible to transfer funds from investors to the companies. Typically, these are the key entities that control the flow of money in the economy. The services provided by the various types of financial institutions may vary from one institution to another.