Financial institution are institutions or companies that are engaged in monetary transactions such as withdrawal, loan, deposit, currency exchange and investment. There are many types of Financial Institutions such as banks ( merchant bank, development bank, microfinance bank, Investment bank etc), insurance companies, brokerage firms. Every individual are involved in transactions with one of this Financial institution in one way or the other. Many people make use of banks, and insurance company. Traders also trade with brokerage firm in currency exchange, Cryptocurrencies and other forms of financial market. Financial institutions also help the growth of economy of a country.
Advantages of Financial Institutions
1. They help in the growth of a country's economy.
2. They involve in all monetary transactions, which includes deposit, loan, and other forms of transactions.
Disavantages of Financial Institutions
1. Some involves risk and uncertainty.