BY

ANKIT JAISWAL-06
CHETALI KESWANI-13
FINANCIAL INSTITUTION
A financial institution (FI) is a company engaged in the
business of dealing with monetary transactions, such
as deposits, loans, investments and currency exchange.
Financial institutions encompass a broad range of
business operations within the financial services
sector, including banks, trust companies, insurance
companies, and brokerage firms or investment dealers.
Virtually everyone living in a developed economy has
an ongoing or at least periodic need for the services of
financial institutions.
Typesof Financial Institutions

 Depository institutions – deposit-taking institutions

that accept and manage deposits and make loans,
including banks, building societies, credit
unions, trust companies, and mortgage
loan companies;
 Contractual institutions – insurance
companies and pension funds
 Investment institutions – investment
banks, underwriters, brokerage firms.
FUNCTION OF FINANCIAL
INSTITUTION
 The primary functions of deposit taking financial
institutions of this nature are as follows:
 Accepting Deposits
 Providing Commercial Loans
 Providing Real Estate Loans
 Providing Mortgage Loans
 On the other hand, there are insurance companies that
provide coverage for a variety of risk factors and they also
provide several investment options. Insurance companies
provide loans for a number of purposes and create
investment products.
 The functions of financial institutions, such as stock
exchanges, commodity markets, futures, currency, and
options exchanges are very important for the economy.
These institutions are involved in creating and
providing ownership for financial claims. These
institutions are also responsible for maintaining
liquidity in the market and managing price change
risks. As part of their various services, these
institutions provide investment opportunities and
help businesses to generate funds for various purposes.
 The functions of financial institutions like investment
banks are also vital and related to the investment
sector. These companies are involved in a number of
financial activities, such as underwriting securities,
selling securities to investors, providing brokerage
services, and fundraising advice.
Investment company
 Investment companies are business entities, both
privately and publicly owned, that manage, sell, and
market funds to the public. The main business of an
investment company is to hold and manage securities
for investment purposes, but they typically offer
investors a variety of funds and investment services,
which include portfolio management, recordkeeping,
custodial, legal, accounting, and tax management
services.
Types of investment company
 Closed-end funds
 open-end funds
 Unit investment trusts
THANK YOU