What Are The Types Of Financial Institutions?

There are basically two types of Financial Institutions with respect to the Government; those that fall under direct state authority and those that are private. Another basis of classification would be based on the institutions that are mainly involved in traditional banking activities related to deposits and the issuance of loans and those that are concerned primarily with loans, insurance, finance and credit, mortgage, stock and other functions related to the World of finance.

The major difference in the above mentioned institutions is their modus operandi in the issuance of loans or the way in which finance is generated. State run institutions generate the resources from deposits and sale of shares; while private institutions generally act as intermediaries in generating finance by offering investment opportunities to people or establishments with excess capital and thus making it easy for companies and businesses to obtain the necessary funds.     

The financial institutions based on the service that they offer may be broadly classified as follows
1. Banks
2. Credit Unions
3. Insurance Companies
4. Finance Companies                        
5. Mortgage Companies
6. Trust Companies      
7. Savings and Loan Associations

The agency responsible for regulating the money supply in the United States is