LeoGlossary: Financial Institution
Some of the services provides are:
Financial institutions are essential because they provide a marketplace for money and assets so that capital can be efficiently allocated to where it is most useful. Lenders provide resources to those who are in need, either on a short or long term basis.
Commercial banks find borrowers while investment banks find investors.
Some financial institutions make money by collecting deposits. These entities are depository institutions and use the deposits to earn a higher return as compared to the the interest rate it is paying. These are traditional banks and credit unions. The difference between the two of these is who owns the institution.
This contrasts with non-depository institutions that do not take in deposits. The money that is utilized by these firms come from operations. These are brokerage firms and insurance companies.
Financial institutions that provide investment services are called investment institutions. These can be brokerage firms, exchanges, and investment banks. These can provide access to securities along with management services.
These entities target both individuals and corporations. The services to corporations can be asset management as well as underwriting. Investment banks also are market makers, helping to provide liquidity.
Types of Financial Institutions
- Central Banks
- Retail and Commercial Banks
- Internet Banks
- Credit Unions
- Savings and Loan Associations
- Investment Banks
- Brokerage Firms
- Insurance Companies
- Mortgage Companies
The largest banks in the world by revenue.
- Industrial and Commercial Bank Of China Ltd. (IDCBY)
- China Construction Bank Corp. (CICHY)
- JPMorgan Chase & Co. (JPM)
- Bank of America Corp. (BAC)
- Wells Fargo & Co. (WFC)
- Citigroup Inc. (C)
- BNP Paribas (BNPQY)
- HSBC Holdings (HSBC)
- Banco Santander (SAN)
- China Merchants Bank (CIHKY)
Top 10 Banks By Market Capitalization (as of 3/20/23)
|JP Morgan Chase||JPM||$376 billion|
|Bank of America||BAC||$225 billion|
|Industrial and Commercial Bank of China (ICBC)||IDCBY||$224 billion|
|China Construction Bank||CICHY`||$163 billion|
|Bank of China||BACHF||$158 billion|
|Agricultural Bank of China||ACGBY||$154 billion|
|Morgan Stanley||MS||$145 billion|
|Wells Fargo||WFC||$144 billion|
|Royal Bank of Canada||RY||$130 billion|
Posted Using LeoFinance Beta