different types of financial institutions
In the most General form of financial institutions include the following types:
commercial banks (universal and specialized),
non-Bank financial institutions (financial and insurance companies, pension funds, pawnshops, credit unions and Association),
investment institutions (investment companies and funds, stock exchanges, financial brokers, investment advisers, etc.).
A General characteristic for all groups of institutional investors is the accumulation of their temporarily free funds (state, firms, population) followed by embedding them in the economy. However, each of these groups has its own characteristics as in the implementation of the inherent functions, so Yves mechanism of accumulation of investment resources and their further placement.
different types of financial institutions Banks. Significant investment potential is concentrated in the institutions of the banking system, which in contrast to many other intermediary institutions have exceptional opportunities the use of cash and credit emission.
Non-Bank Finance and credit institutions. To non-banking financial institutions include pawnshops, credit societies, credit unions, mutual credit society, insurance companies, pension funds, financial companies, etc.
Pawn shops are a credit institution issuing loans against a pledge of movable property. Historically, they have emerged as private enterprises usurious loan.
Investment institutions. Investment institutions are presented by economic entities (or individuals), which carry out activities on the securities market as an exclusive, i.e., not it is allowed to combine with other activities. To the investment institutions include certain types of special financial-credit institutions (investment banks of the first kind, investment companies and funds), as well as the stock exchanges, investment brokers, dealers, consultants, etc.
Investment companies and funds are a form of financial and credit institutions, accumulating the funds of private investors by issuing its own securities and place them into securities of other issuers. Investment companies and funds may issue securities, including investment certificates, floated on the stock market.
The limits of their issue is restricted to the coverage provided by the portfolio of securities of the company.
