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.
financial institution is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
financial institution appears in the definitions of the following terms:
merchant bank,
investment grade bond,
tier 2 capital,
venture capital,
bank charge,
money-center bank,
financial center,
tier 1 capital,
primary capital,
conduit finance
and
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