Regulation Of Financial Institutes : Financial Institutions

1344 Words Oct 14th, 2015 6 Pages
REGULATION OF FINANCIAL INSTITUTES
Financial institutions provide different kind of services. Depository institutions like banks, savings, loans and credit unions transform liquid liabilities like checking accounts, current accounts, and certificates of deposit that can be cashed in prior to maturity into relatively illiquid assets, such as home mortgages, house loans, loans to finance business inventories and accounts receivable, and credit card balances. These institutions also operate the payments system where bank balances are shifted between the set parties through checks, wire transfers, and credit and debit card transactions. INSURANCE companies fall into two broad categories which are life and health insurers, whose policies provide financial protection against different conditions like death, disability, and medical bills and property and casualty insurers, whose policies protect policyholders against losses arising from certain accidents like fire, natural disasters, accidents, fraud, and other calamities. Financial institutions which are having fixed-amount creditors include institutes with respect to banks, credit unions, insurance companies which are life or instrument, stockbrokers, and money-market mutual funds (MMMF).
These institutes have many good effects on the cooperative world. In today 's global world the main thing is corporate social responsibility (CSR) is improving public demand for greater transparency from multinational companies as well as the…
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