Types of Financial Institutions

1. Commercial Banks
 Depository institutions whose major assets are loans and whose major liabilities are
deposits.
2. Thrifts
 Depository institutions in the form of savings associations, saving banks, and credit
unions. Thrifts are just like commercial banks but are focus in one segment, such as real
estate loans or consumer loans.
 Mas maliit sa commercial bank (assets)
3. Insurance Companies
 Financial institutions that project individuals and corporations from adverse events.
4. Securities Firms and Investment Banks
 Financial institutions that help firms issue securities and engage in related activities such
as securities brokerage and securities trading.
5. Finance Companies
 Financial intermediaries that make loans to both individuals and businesses. Unlike
depository institutions, finance companies do not accept deposits but instead rely on
short -and-long-term debt for funding.
 No deposits (Difference from commercial banks
6. Investment Funds
 financial institutions that after savings plans through which fund participants accumulate
savings during their working years before withdrawing them during their retirement
years.