explain rules of financial institutions and bank
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Answer:
Financial institutions, otherwise known as banking institutions, are corporations that provide services as intermediaries of financial markets. Broadly speaking, there are three major types of financial institutions:[1][2]
1). 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;
2). Contractual institutions – insurance companies and pension funds
3). Investment institutions – investment banks, underwriters, brokerage firms.
Financial institutions can be distinguished broadly into two categories according to ownership structure:
Commercial Banks
Cooperative Banks
Some experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies. A consequence of this might be fewer banks serving specific target groups, and small-scale producers may be under-served.[3]