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An institution which provides financial services to the customers is known as a financial institution. When the financial institutions act as a platform between the buyers and the sellers then they are known as financial intermediaries. These institutions are regulated by the government of the state. There are three types of the financial institutions including deposit taking institutions like banks, trust companies, credit unions and mortgage companies. Second type of financial institutions are insurance companies and the pension funds. Third type include brokers, investment funds and the underwriters.
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