Classification and types of financial institutions

Retailers Commercial Banks Institutions A commercial bank can be defined as a type of financial institution which provides a wide range of services such as mortgage lending, giving business and auto loans and accepting deposits. The commercial bank also deals with basic investment products such as savings accounts and certificates of deposit. The traditional commercial banks come with all facilities such as safe deposit boxes, bank tellers, ATMs and vaults.

Classification and types of financial institutions

Art and culture See also: However, these institutions may be considered private or autonomous, whilst organised religion and family life certainly pre-date the advent of the nation state.

Various types of financial institutions are as follows:

The Neo-Marxist thought of Antonio Gramscifor instance, distinguishes between institutions of political society police, the army, legal system, etc. For example, in Schenck v. United Statesthe circumstance of which made that speech case special Informal institutions[ edit ] Informal institutions have been largely overlooked in comparative politics, but in many countries it is the informal institutions and rules that govern the political landscape.

To understand the political behaviour in a country it is important to look at how that behaviour is enabled or constrained by informal institutions, and how this affects how formal institutions are run.

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For example, if there are high levels of extra judicial killings in a country, it might be that while it is prohibited by the state the police are actually enabled to carry out such killings and informally encouraged to prop up an inefficient formal state police institution.

An informal institution tends to have socially shared rules, which are unwritten and yet are often known by all inhabitants of a certain country, as such they are often referred to as being an inherent part of the culture of a given country.

Informal practices are often referred to as "cultural", for example clientelism or corruption is sometimes stated as a part of the political culture Classification and types of financial institutions a certain place, but an informal institution itself is not cultural, it may be shaped by culture or behaviour of a given political landscape, but they should be looked at in the same way as formal institutions to understand their role in a given country.

Informal institutions might be particularly used to pursue a political agenda, or a course of action that might not be publicly popular, or even legal, and can be seen as an effective way of making up for lack of efficiency in a formal institution.

For example, in countries where formal institutions are particularly inefficient, an informal institution may be the most cost effective way or actually carrying out a given task, and this ensures that there is little pressure on the formal institutions to become more efficient.

The relationship between formal and informal institutions is often closely aligned and informal institutions step in to prop up inefficient institutions. However, because they do not have a centre, which directs and coordinates their actions, changing informal institutions is a slow and lengthy process.

Social science perspectives[ edit ] While institutions tend to appear to people in society as part of the natural, unchanging landscape of their lives, study of institutions by the social sciences tends to reveal the nature of institutions as social constructionsartifacts of a particular time, culture and society, produced by collective human choice, though not directly by individual intention.

Sociology traditionally analyzed social institutions in terms of interlocking social roles and expectations. Social institutions created and were composed of groups of roles, or expected behaviors.

The social function of the institution was executed by the fulfillment of roles. Institutions can be seen as "naturally" arising from, and conforming to, human nature—a fundamentally conservative view—or institutions can be seen as artificial, almost accidental, and in need of architectural redesign, informed by expert social analysis, to better serve human needs—a fundamentally progressive view.

Adam Smith anchored his economics in the supposed human "propensity to truck, barter and exchange". Modern feminists have criticized traditional marriage and other institutions as element of an oppressive and obsolete patriarchy. Economics, in recent years, has used game theory to study institutions from two perspectives.

Firstly, how do institutions survive and evolve? In this perspective, institutions arise from Nash equilibria of games. For example, whenever people pass each other in a corridor or thoroughfare, there is a need for customs, which avoid collisions.

Classification and types of financial institutions

Such a custom might call for each party to keep to their own right or left—such a choice is arbitrary, it is only necessary that the choice be uniform and consistent.

Such customs may be supposed to be the origin of rules, such as the rule, adopted in many countries, which requires driving automobiles on the right side of the road.

Commercial Banks Institutions

Secondly, how do institutions affect behaviour? In this perspective, the focus is on behaviour arising from a given set of institutional rules. In these models, institutions determine the rules i. Douglass North argues, the very emergence of an institution reflects behavioral adaptations through his application of increasing returns.

For example, the Cournot duopoly model is based on an institution involving an auctioneer who sells all goods at the market-clearing price. While it is always possible to analyze behaviour with the institutions-as-equilibria approach instead, it is much more complicated.

A " memetic institutionalism " has been proposed, suggesting that institutions provide selection environments for political action, whereby differentiated retention arises and thereby a Darwinian evolution of institutions over time.

Public choice theoryanother branch of economics with a close relationship to political science, considers how government policy choices are made, and seeks to determine what the policy outputs are likely to be, given a particular political decision-making process and context.

· Financial institutions, otherwise known as banking institutions, are corporations which provide services as intermediaries of financial markets.

Broadly speaking, there are three major types of financial institutions: [1] [2]plombier-nemours.com  · the classification of financial institutions. During recent years there has been a great growth in both the number and the varieties of institutions of a financial plombier-nemours.com Data Stewards assess Impact Levels, specify data usage guidelines, and assign a corresponding Data Classification to Data Types or Data Sets.

The 9 Major Financial Institutions

They authorize access to data for which they are responsible and use reasonable means to inform those receiving or accessing the data of their obligations in so plombier-nemours.com://plombier-nemours.com  · The types of financial institutions include commercial banks, investment banks, insurance companies, brokerages, investment firms, management investment companies and non-bank financial institutions including credit unions, payday lenders and savings and loans institutions.

Financial institutions plombier-nemours.com › Business & Finance › Corporations.

Classification and types of financial institutions

Essentially, financial institutions help their clients facilitate the flow of money through the economy. Generally speaking, there are three types of financial institutions in Canada: deposit-taking institutions, insurance companies, and investment institutions.

A financial institution is an establishment that conducts financial transactions such as investments, loans and deposits. Almost everyone deals with financial institutions on a regular basis.

Institution - Wikipedia