Functions of Financial

Institutions

• The major functions of financial intitution’s is to facilitate the allocation and

development of economic resources both in space and time within an
uncertain environment.

• Financial institutions play the role of intermediaries that facilitate flow.

Some Major Functions:

• Clearing and settling payments.

• Providing mechanisms for pooling resources (large-scale indivisible enterprise).

• Providing ways to transfer economic resources through time and across

distances.

• Managing risk and uncertainty.

• Giving price information to help coordinate decentralized decision-making.

Major categories of financial institutions of India

• There are 10 major categories of financial institutions that provide a variety of

services from mortgage loans to investment vehicles.
• As financialization continues to permeate our lives, it is increasingly likely that you
will have an account or product offered by several of these types.
-The major categories of financial institutions include:

1)central banks 2)retail and commercial banks 3)internet banks 4)credit unions
5)loans associations 6)investment banks 7)investment companies 8)brokerage firms

9)insurance companies 10)mortgage companies.