Financial Institutions And The Financial System Essay

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Financial institutions Introduction Financial institutions are establishments that conduct financial transactions like investments loans and deposits. Many people all over the world depend on financial institutions on a regular basis through depositing money and exchange of currencies. This paper will critically analyze the financial institutions that we have and how they are helpful in day to day operations Literature review There are different financial institutions today and each performs its role in the financial system. They are grouped according to the services they offer to consumers. The financial institutions that have been highlighted here are both banking and non banking institutions, profit and nonprofit financial institutions which serve the roles of reducing the loss of money which can be through thefts and accidents since. Loans that people and organizations use to purchase or expand business operations. They serve as agents to payments inside a nation and between different countries and act as an intermediary between issuer of securities and the investors Body Commercial banks do accept deposits and ensure security and convenience to the funds of their customers. Through this the customers are ensured that their money is safely kept. It is very risky for individuals to keep large amounts liquid cash at home or in their wallets. Banks take the role of reducing the loss of money which can be through thefts and accidents since consumers need not to keep
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