Financial institutions provide financial services for their clients or members in every country. They are intermediaries of financial markets responsible for distributing financial resources to the potential users. They facilitate the flow of money through the economy, for example collect and provide funds for the necessary sector or individual.
Financial institutions include:
- Deposit Taking Institutions
- Finance and Insurance Institutions
- Investment Institutions
- Pension Providing Institutions
- Risk Management Institutions
Most financial institutions are highly regulated by government. There are governmental financial institutions with regulatory and supervisory functions.