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Finance question - Assignment Example
Author : keanu36
Finance & Accounting
Pages 4 (1004 words)
Financial Institutions Author Institution Before getting in to details on financial institutions, it is imperative to understand the meaning of financial institutions. Thus, financial institution is an organization that performs financial transactions on behalf of its clients such as the government or individuals through deposits, financial loans, investments and financial negotiations, (Valentine, Ford and Copp 2003)…
This paper will take into account depository institutions whose main purpose is to provide financial services such as loans and deposits. Some of the constituents of depository institution are commercial banks, building societies, mortgage loans and credit unions, which all fall under one mainstream of financial institution. The depository institution came into existence when people felt there was need for security for their money. People faced the risks of loss of money through theft or accidents’ while keeping their money in their wallets or at home. Thus formed the initial goal of financial institution, which was only to offer the safekeeping of their clients’ money. Currently depository institution such as commercial banks, takes deposits from clients, offer security and convenience of service to their customers. Clients can now transact with the use of checks or wire transfers at their convenience courtesy of the commercial banks. Clients to banks also have a chance to earn money from their deposits that is they can let their money work for them. ...