financial institution


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Financial institution

An enterprise such as a bank whose primary business and function is to collect money from the public and invest it in financial assets such as stocks and bonds, loans and mortgages, leases, and insurance policies.

Financial Institution

An organization, which may be either for-profit or non-profit, that takes money from clients and places it in any of a variety of investment vehicles for the benefit of both the client and the organization. Common examples of financial institutions are retail banks, which take deposits into safekeeping and use them to make loans to other customers, and insurance companies, which do not take deposits, but provide guarantees of payment if a certain situation occurs in exchange for a premium. See also: Depository institution, Non-depository institution.

Financial institution.

Any institution that collects money and puts it into assets such as stocks, bonds, bank deposits, or loans is considered a financial institution. There are two types of financial institutions: depository institutions and nondepository institutions.

Depository institutions, such as banks and credit unions, pay you interest on your deposits and use the deposits to make loans. Nondepository institutions, such as insurance companies, brokerage firms, and mutual fund companies, sell financial products.

Many financial institutions provide both depository and nondepository services.

financial institution

an institution that acts primarily as a FINANCIAL INTERMEDIARY in channelling funds from LENDERS to BORROWERS (e.g. COMMERCIAL BANKS, BUILDING SOCIETIES), or from SAVERS to INVESTORS (e.g. PENSION FUNDS, INSURANCE COMPANIES). See FINANCIAL SYSTEM.

financial institution

an institution that acts primarily as a FINANCIAL INTERMEDIARY in channelling funds from LENDERS to BORROWERS (e.g. COMMERCIAL BANKS, BUILDING SOCIETIES) or from SAVERS to INVESTORS (e.g. PENSION FUNDS, INSURANCE COMPANIES). See FINANCIAL SYSTEM.

financial institution

An organization that obtains money from deposits and earns money from loans.

References in periodicals archive ?
The Electronic Payments Network (EPN), has launched the industry's first centralized OFAC screening solution for financial institutions originating and receiving cross-border ACH transactions.
As recent events have highlighted, a financial institution may assume substantial reputational and legal risk if the institution enters into a complex structured finance transaction with a customer and the customer uses the transaction to circumvent regulatory or financial reporting requirements, evade tax liabilities, or further other illegal or improper behavior.
Through the Identrus system, corporate customers of Identrus member financial institutions can conduct electronic transactions with confidence in the integrity, authenticity, and privacy of the communications.
Assuming the required agreements are in place, transacting cross-border payments is a process that uses the existing clearinghouse network infrastructure to settle payments between the originating depository financial institution and originating gateway operator, and between the receiving gateway operator and receiving depository financial institution.
The Financial Institution Crime Awareness Course provides a tangible way for the Suffolk County Police Department to demonstrate its concern for the safety of community residents.
Note: An election of treatment for losses in one financial institution does not affect the treatment of losses from other financial institutions.
Their multiple image clearing sources allow us to streamline our processes and concentrate on serving our financial institution customers.
How to comply with the exception for disclosures under a joint marketing arrangement with an unrelated financial institution.
has rolled out AIG e-dorsement, an enhancement to its financial institutions professional liability coverage that addresses professional services performed via the Internet.
The volatility of account balances and classes of transactions must be carefully considered in designing a financial institution audit.
The increasing number of federal regulations, combined with the rapid growth of Internet banking, has spurred many financial institutions to look for more robust security monitoring to protect their customers' information.
branches and agencies of foreign banks, as well as through special projects and various other programs, monitors financial institutions in an attempt to stop money laundering activities.

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