Financial institutions are organizations that provide financial services such as accepting deposits, granting loans, managing investments, and facilitating payments.
Thank you for reading this post, don't forget to subscribe!- They act as intermediaries between savers and borrowers and play a vital role in the efficient functioning of the financial system.
Role of Financial Institutions:
- Direct and indirect investments
- Maturity intermediation
- Risk diversification
- Cost reduction
- Payment mechansim
- Transformation of financial assets
Types of Financial Institutions:
- Depository Institutions
- Non-Depository Institutions