| 释义 |
Financial Institution (FI)
An establishment that focuses on dealing with financial transactions, such as investments, loans and deposits. Conventionally, financial institutions in composed of organizations such as banks, trust companies, insurance companies and investment dealers. Almost everyone has deal with a financial institution on a regular basis. Everything from depositing money to taking out loans and exchange currencies must be done through financial institutions. Investopedia Says:
Since all people depend on the services provided by financial institutions, it is imperative that they are regulated highly by the federal government. For example, if a financial institution were to enter into bankruptcy as a result of controversial practices, this will no doubt cause wide-spread panic as people start to question the safety of their finances. Also, this loss of confidence can inflict further negative externalities upon the economy. Related Terms:
Bank
Currency
Dealer
Insurance
Loan
Trust Company |