#4- Financial Institutions
- Finance at Your Fingertips
- Oct 6, 2023
- 1 min read
Hey friends!
Welcome back to Finance at your Fingertips. In this week's blog, we'll be talking all about Financial Institutions. If you'd like to unlock your inner investor, continue reading for some useful tips and tricks :)
WHAT ARE FINANCIAL INSTITUTIONS?
A financial institution is a company that focuses on dealing with financial transactions, such as investments, loans, and deposits.
Any institution that collects money and puts it into assets such as stocks, bonds, bank deposits, or loans is considered a financial institution. There are two types of financial institutions: depository institutions and non-depository institutions.
TYPES OF FINANCIAL INSTITUTIONS
DEPOSITORY
Accept deposits from customers.
Include commercial banks, savings banks, and credit unions.
NON-DEPOSITORY
Don't accept deposits from customers.
Include finance companies, insurance companies, and brokerage firm.
KEY FACTS
Central banks are the financial institutions responsible for the oversight and management of all other banks.
Credit unions serve a specific demographic per their field of membership, such as teachers or members of the military.
Investment banks do not take deposits; instead, they help individuals, businesses and governments raise capital through the issuance of securities.
Brokerage firms assist individuals and institutions in buying and selling securities among available investors.
That's it for today folks! We hope you learnt a little about financial institutions!
Be sure to check us out soon for our next installment in our Finance Fridays series!
Until then, "Let's be like Krabs, and get that bag"🤑
