Financial institutions

of
Bangladesh :
Team member : ID :
• Shahriar obeyed (L) • Id : 2021220106003 (43)
• Shove Kumar Malik • Id : 2022020106033 (44)
• Tasmia shopnil • Id : 2022020106033 (44)
• Md . Galib Hossain • Id : 2022020106012 (44)
• Bithi Rani Das • Id : 2021220106001 (43)
Financial Institution :
A company engaged in the business of dealing with financial and monetary transactions such as deposits, loans,
investments, and currency exchange.

• Financial institutions encompass a broad range of business operations within the financial services sector
including banks, trust companies, insurance companies, brokerage firms, and investment dealers.

• A financial institution (FI) is a company engaged in the business of dealing with financial and monetary
transactions such as deposits, loans, investments, and currency exchange.
Understanding Financial Institutions (FIs)
• Financial institutions serve most people in some way, as financial operations are a critical
part of any economy, with individuals and companies relying on financial institutions for
transactions and investing. Governments consider it imperative to oversee and regulate
banks and financial institutions because they do play such an integral part in the economy.
Historically, bankruptcies of financial institutions can create panic.

• In the United States, the Federal Deposit Insurance Corporation (FDIC) insures regular
deposit accounts to reassure individuals and businesses regarding the safety of their
finances with financial institutions.

• The health of a nation's banking system is a linchpin of economic stability. Loss of

confidence in a financial institution can easily lead to a bank run.
 Types of Financial Institutions:

Financial institutions offer a wide range of products and services for individual and commercial clients.
The specific services offered vary widely between different types of financial institutions.

• Commercial Banks :

A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal, and
mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small
businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.

• Investment Banks :

Investment banks specialize in providing services designed to facilitate business operations, such as capital expenditure financing and
equity offerings, including initial public offerings (IPOs). They also commonly offer brokerage services for investors, act as market makers
for trading exchanges, and manage mergers, acquisitions, and other corporate restructurings.
• Insurance Companies :
Among the most familiar non-bank financial institutions are insurance companies. Providing insurance, whether for individuals or corporations, is
one of the oldest financial services. Protection of assets and protection against financial risk, secured through insurance products, is an essential
service that facilitates individual and corporate investments that fuel economic growth.

• Brokerage Firms :

Investment companies and brokerages, such as mutual fund and exchange-traded fund (ETF) provider Fidelity Investments, specialize in
investment services that include wealth management and financial advisory services. They also offer access to investment products ranging from
stocks and bonds to lesser-known alternative investments, such as hedge funds and private equity investments.
 Why Are Financial Institutions Important?
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. For example, a bank takes in customer deposits and lends the money to
borrowers. Without the bank as an intermediary, any individual is unlikely to find a qualified borrower or know how to
service the loan. Via the bank, the depositor can earn interest as a result. Likewise, investment banks find investors to
market a company's shares or bonds to.

What Are the Different Types of Financial Institutions?

The most common types of financial institutions are commercial banks, investment banks, insurance companies, and
brokerage firms. These entities offer a wide range of products and services for individual and commercial clients such as
deposits, loans, investments, and currency exchange.
 Which Agency Oversees Banking Operations in the United States?
The OCC, the Office of the Comptroller of the Currency, is an independent branch of the U.S. Department of the Treasury
that charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and
agencies of foreign banks.

What's the Difference Between a Commercial and Investment Bank?

A commercial bank, where most people do their banking, is a type of financial institution that accepts deposits, offers
checking account services, makes business, personal, and mortgage loans, and offers basic financial products like certificates
of deposit (CDs) and savings accounts to individuals and small businesses. Investment banks specialize in providing services
designed to facilitate business operations, such as capital expenditure financing and equity offerings, including initial public
offerings (IPOs). They also commonly offer brokerage services for investors, act as market makers for trading exchanges, and
manage mergers, acquisitions, and other corporate restructurings.
 Which Agency Regulates Investment Banking Firms?

• The Securities and Exchange Commission (SEC) oversees the operations of investment banks.

The Bottom Line

Financial institutions offer a wide range of business operations within the financial services sector including banks, trust
companies, insurance companies, brokerage firms, and investment dealers. Regulatory agencies such as the OCC, the SEC,
the FDIC, and the Federal Reserve oversee the operations of financial institutions in the United States.
 Conclusion

To sum up our theology, we have argued that the purposes of finance are to bring glory to God, to enable
humans to be creation stewards, and to allow justice and love. We argued this by showing that God created
the foundations of finance and then showing how these foundations enable humans to build four specific
institutions on those foundations. These institutions enable humans to obey God’s creation stewardship
mandate and God’s justice and love mandates. Below we provide several examples of how in this framework
Christ’s redemption can enable stewardship, justice, and love.