Business Studies, asked by KomalNancy3289, 11 months ago

Financial institutions that offer a variety of consumer loans from funds obtained primarily from depositors are called

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Answered by THEARYAN
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Financial institutions, otherwise known as banking institutions, are corporations which provide services as intermediaries of financial markets. Broadly speaking, there are three major types of financial institutions:[1][2]

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.

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]

Classification of financial institutions: 1. Banking institutions

a) Commercial Banks b) Cooperative Banks

2. Non Banking institutions

Financial institutions are the institutions which offers financial services for clients or members.

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