Financial Institution

A financial institution is an organization that provides a wide range of financial services, including the movement, investment, and lending of money, as well as dealing in financial instruments. These institutions are pivotal in the financial system for facilitating the flow of capital and providing an infrastructure for financial transactions.

Types of financial institutions include:

Each type of financial institution plays a specific role in the economy, catering to different sections of society and fulfilling different financial needs. The regulatory frameworks governing these institutions ensure their stability, integrity, and ongoing viability, thereby maintaining trust and continuity in the financial system. These institutions not only help in accumulating savings and channeling them into productive investments, but also provide mechanisms for wealth management, personal finance, retirement planning, and much more.