Financial institutions include banks, securities companies, insurance companies, trust and investment companies and fund management companies. At the same time, it also refers to lending institutions, which provide loans to companies with financial turnover to customers. The interest rate is relatively higher than that of banks, but it is more convenient for customers to borrow because they do not need complicated documents to prove it.
Extended data:
Functions of financial institutions:
1. Raise funds in the market, obtain monetary funds, convert them into different kinds of more acceptable financial assets, and form liabilities and assets of financial institutions. This is the basic function of financial institutions, and the financial institutions that exercise this function are the most important types of financial institutions.
2. Trading financial assets on behalf of customers and providing settlement services for financial transactions.
3. Self-operated financial assets to meet customers' needs for different financial assets.
4. Help customers create financial assets and sell them to other market participants.
5. Provide investment advice to customers, keep financial assets and manage customers' investment portfolios.
The first service mentioned above involves the function of financial institutions to accept deposits; The second and third services are the brokerage and trading functions of financial institutions; The fourth service is called underwriting function, and financial institutions that provide underwriting generally also provide brokerage or trading services; The fifth service belongs to consulting and trust functions.
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