financial institution

  

Definition

Private (shareholder-owned) or public (government-owned) organizations that, broadly speaking, act as a channel between savers and borrowers of funds (suppliers and consumers of capital). Two main types of financial institutions (with increasingly blurred dividing line) are: (1) Depository banks and credit unions which pay interest on deposits from the interest earned on the loans, and (2) Non-depository insurance companies and mutual funds (unit trusts) which collect funds by selling their policies or shares (units) to the public and provide returns in the form periodic benefits and profit payouts.

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  • I knew this place was great because it was voted as the most prestigious financial institution in the whole world.

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  • You should always try to pay back your financial institution as quickly as possible so that they will continue to loan to you.

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  • Keeping a good reputation with your financial institution will give them the peace of mind to continue business with you.

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