Professional Documents
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Assistant Professor
ID- M1415044
Mirpur-12, Dhaka
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Table of Contents
Financial Institute
a. Commercial Bank
1.
11
2.
Specialized Banks
11
3.
12
13
4.
11
5.
b. Credit unions
Finance companies
15
16
b.
Mutual funds
16
17
c.
Insurance companies
17
19
Referance
20
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Table of Contents
Financial Institute
a. Commercial Bank
1.
11
2.
Specialized Banks
11
3.
12
13
4.
11
5.
b. Credit unions
Finance companies
15
16
b.
Mutual funds
16
-
17
c.
Insurance companies
17
19
Referance
20
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Formal Sector, 2.
Semi-Formal Sector, 3.
Informal Sector. The sectors have been categorized in accordance with their degree
of regulation. The
formal sector
includes all regulated institutions like Banks, Non-Bank Financial Institutions (FIs),
Insurance Companies, Capital Market Intermediaries like Brokerage Houses,
Merchant
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Financial Institute:
A financial institution is an institution that provides financial services for its clients
or members. One of the most important financial services provided by a financial
Depository Institutions
A depository institution is a financial institution in the United States (such as a
savings bank, commercial bank, savings and loan associations, or credit unions)
that is legally allowed to
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They offer deposit accounts that can accommodate the amount and liquidity
characteristics desired by most surplus units.
They repackage funds received from deposits to provide loans of the size and
maturity desired by deficit units.
They have mare expertise than individual surplus units in evaluating the credit
worthiness of deficit units.
They diversify their loans among numerous deficits units and therefore can absorb
defaulted loans better than individual surplus units could. The depository types of
financial institutions include banks, credit unions, saving and loan associations and
mutual saving banks
* Commercial banks
Commercial banks are those financial institutions, which help in pooling the savings
of surplus units and arrange their productive uses. They basically accept the
deposits from individuals and institutions, which are repayable on demand. These
deposits from individuals and institutions are invested to satisfy the short-term
financing requirement of business and industry.
* Credit Unions
Credit unions are cooperative associations where large numbers of people are
voluntarily associated for savings and borrowing purposes. These individuals are the
members of credit
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unions as they make share investment along with deposits. The saving generated
from these members are used to lend the members of the union only.
* Saving And Loan Associations
Saving and loan associations are the financial institutions involved in collecting
funds of many small savers and lending these funds to home buyers and other
types of borrowers.
* Mutual Saving Banks
Mutual saving banks are more or less similar to saving and loan associations. They
primarily accepts savings of individuals and they are lent to the home users and
consumers on a long-term basis.
2.
Non-depository Institutions
Non-depository institutions are not banks in real sense. They make contractual
arrangement and investment in securities to satisfy the needs and preferences of
investors. The non-depository institutions include insurance companies, pension
funds, finance companies and mutual funds.
* Insurance Companies
Insurance companies are the contractual saving institutions which collect periodic
premium from insured party and in return agree to compensate against the risk of
loss of life and properties.
* Pension/Provident Funds
Pension funds are financial institutions which accept saving to provide pension and
other kinds of retirement benefits to the employees of government units and other
corporations. Pension funds are basically funded by corporation and government
units for their employees, which make a periodic deposit to the pension fund and
the fund provides benefits to associated employees on the retirement. The pension
funds basically invest in stocks, bonds and other type of long-term securities
including real estate.
Formal Sector, 2.
Semi-Formal Sector, 3.
Informal Sector. The sectors have been categorized in accordance with their degree
of regulation. The
formal sector
includes all regulated institutions like Banks, Non-Bank Financial Institutions (FIs),
Insurance Companies, Capital Market Intermediaries like Brokerage Houses,
Merchant
includes those institutions which are regulated otherwise but do not fall under the
jurisdiction of Central Bank, Insurance Authority, Securities and Exchange
Commission or any other enacted financial regulator. This sector is mainly
represented by Specialized Financial Institutions like House Building Finance
Corporation (HBFC), Palli Karma Sahayak Foundation (PKSF), Samabay Bank,
Grameen Bank etc., Non-Governmental Organizations (NGOs and discrete
government programs. The
informal sector
includes private intermediaries which are completely unregulated.
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5.
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38.
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Reference
1.
Class Lecture:
BUP Regular Class Lecture and Hand out.
Asst.Prof. dr. Jannatul Ferduse, Faculty of Business Studis Bangladesh University of
Professionals. 2. Book:
Bangladesh Bank:
Website
https://www.bb.org.bd/ 4.
http://www.sec.gov.bd/