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 ?
These annual adjustments, known as the reserve requirement exemption amount adjustment and the low reserve tranche adjustment, are based on growth in total reservable liabilities and net transaction accounts, respectively, at all depository institutions between June 30, 2015 and June 30, 2016.
It found that at depository institutions, inconsistencies in depository institution regulators' examination activities can result in different conclusions regarding the safety and soundness of an institution as well as difficulties identifying emerging trends.
The CDIAC was established in 2010 by the Board of Governors of the Federal Reserve to provide input to the Board on the economy, lending conditions, and other issues of interest to community depository institutions.
And in over half the states, 30 percent or more of all branches are offices of out-of-state depository institutions.
An interest rate on excess reserves would act as a floor on overnight interbank lending rates; a depository institution would not likely lend balances to another institution at a lower interest rate than it could earn by keeping the excess funds in its account at the Federal Reserve.
The Minority Depository Institutions Advisory Committee provides the OCC with an invaluable perspective on the business environment affecting minority depository institutions and their customers, said Comptroller of the Currency Thomas J.
NCUA Board Chairman Debbie Matz tasked the agency's Director of the Office of Minority and Women Inclusion to develop and administer the Minority Depository Institutions Preservation Program, which preserves and encourages minority depository institutions required by the law.
The annual indexing of the low reserve tranche and the reserve requirement exemption amount is based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2004, and June 30, 2005.
The new law does not repeal a requirement for management of insured depository institutions to report publicly on internal controls over financial reporting, even though earlier drafts of the legislation called for its repeal.
CDS, which is depository independent, has made a significant commitment to ECP, and it is generating growing interest from corporate billers and depository institutions alike.
The Federal Reserve Board announced on October 12, 2005, modifications to the methodology used to calculate the private-sector adjustment factor (PSAF), which is used in setting fees for certain payment services provided to depository institutions.
Allowing insured depository institutions to affiliate only with firms that were well capitalized and well managed and had internal controls that adequately managed financial and operational risk, and only if the institutions' safety and soundness were unimpaired.

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