Types of Financial Institutions plays major role for Economy
- There are 9 major financial institutions that provide a variety of services from mortgage loans to investment vehicles.
- Credit institutions are not-for-profit companies (and tax exempt) that are owned and operated by their members.
- Internet banks tend to charge their customers fewer fees than traditional banks, and some offer less expensive services such as free online transfers to other banks.
- There are two primary types of financial institutions—non-depository and depository.
- For example, an insurance company would fall under the non-depository group, and a credit union would be defined as a Depositary Institution