• MEANING OF FINANCIAL INSTITUTIONS
    ECONOMICS

    MEANING OF FINANCIAL INSTITUTIONS

    Financial institutions refer to all business organisations which hold money for individuals and institutions and may borrow from them in order to give loans or make other investments. Financial institutions are very important for the economic development of a nation. They represent the main channel or medium by which funds can flow from lenders to borrowers.   TYPES OF FINANCIAL INSTITUTIONS Financial institutions may be divided into two major groups – banking and non-banking financial institutions. The major difference between the banking and the non-banking financial institutions is that the liabilities of the banking institutions are counted as part of the total supply of money while those of the non-banking…

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