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 ?
They submitted that Section 15 of Financial Institutions (Recovery of Finances) Ordinance 2001, had been declared ultra vires of the constitution by the Supreme Court and the LHC through two different judgments.
The number of clients of non-bank financial institutions both private individuals and legal entities amounted to 450,800.
Moreover, the SBP guidelines stated the chartered accountancy firm would move forward to assess the outstanding mortgaged money of the relevant financial institution only when the mortgagees were unable to submit their claims of mortgage money to the firm.
The financial institution also will have, in most cases, already produced documents to investigators.
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The key for financial institutions is to understand that privacy and information security risk management is everyone's business, from the CEO to the mailroom clerk.
The first is that three elements were identified to ascertain the liability of a financial institution when completing a fund transfer.
Rules, as approved by the statutory bodies of the non-bank financial institution, must be transmitted to the state central bank, together with other internal rules regulating the activity of the nonbank financial institution, within 5 working days from receiving the document attesting registration in the special register.
Forty-four percent of survey respondents say they like logging on to a bank's secure Web site, and 34% choose e-mail as a preferred method of communication with their financial institution.
The principles discussed in this paper are valid for individual financial institution restructuring, and they become important with the deflection or extensive of the incidence for financial institution failure.
291(a)(3) provides a 20% deduction disallowance for any "financial institution preference item." Sec.
UBS, a U.S.-Swiss financial institution, bought for US$2.50 billion Banco Pactual, a Brazilian financial institution.

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