DEVELOPMENT FINANCIAL INSTITUTIONS

DFIs occupy the space between public aid and private investment. They are
financial institutions, which provide finance to the private sector for investments
that promote development. They focus on developing countries and regions
where access to private sector funding is limited.

DIFFERENT KINDS OF BANKS

Common types of financial institutions include

 banks,
 Insurance Co,
 Leasing Co,
 Investment Co,
 Mutual Funds

A bank is a commercial or state institution that provides financial services,

including issuing money in various forms, receiving deposits of money, lending
money and processing transactions and the creating of credit.

Financial companies
(NBFCs) also known as a non-bank or a non-bank bank, are financial institutions
that provide banking services without meeting the legal definition of a bank, i.e.
one that does not hold a banking license.

Investment Company
Generally, an "investment company" is a company (corporation, business trust,
partnership, or Limited Liability Company) that issues securities and is primarily
engaged in the business of investing in securities.
Functions Of Financial Institutions

In financial economics, a financial institution is an institution that

provides financial services for its clients or members. Probably the most
important financial service provided by financial institutions is acting as
financial intermediaries. Most financial institutions are highly regulated
by government.

Broadly speaking, there are three major types of financial institutions

1. Deposit-taking institutions that accept and manage deposits and

make loans, including banks, building societies, credit unions, trust
companies, and mortgage loan companies

2. Insurance companies and pension funds; and

3. Brokers, underwriters and investment funds.

Financial institutions include banks, credit unions, asset management

firms, building societies, and stock brokerages, among others. These
institutions are responsible for distributing financial resources in a
planned way to the potential users.
Product and Services
Deposits taking financial organizations are known as commercial
banks, mutual savings banks, savings associations, loan associations
and so on. The primary functions of financial institutions of this
nature are as follows:

• Accepting Deposits
• Providing Commercial Loans
• Providing Real Estate Loans
• Providing Mortgage Loans
• Issuing Share Certificates

Finance companies provide loans, business inventory financing and

indirect consumer loans. These companies get their funds by issuing
bonds and other obligations. These companies operate in a number
of countries. On the other hand, there are insurance companies that
provide coverage for a variety of risk factors and they also provide
several investment options. Insurance companies provide loans for
a number of purposes and create investment products.