financial institution

Examples of financial institution in the following topics:

• Non-Bank Financial Institutions

  • A non-bank financial institution offers customers bank-related services such as payday lending, cashier's checks, and check cashing.
  • A non-bank financial institution (NBFI) is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency.
  • NBFIs facilitate bank-related financial services, such as investments, risk pooling, contractual savings, and market brokering.
  • The international development community, with a vision it calls "financial sector deepening," is promoting the extension of diverse financial services by a wide range of bank and non-bank financial institutions to ever larger numbers of low-income and middle-class households around the world.
  • But these short-term financial fixes can cost you big bucks because they are ostensibly high-cost loans.

• The World Bank

  • The World Bank is an international financial institution that provides loans to developing countries for various programs.
  • The World Bank is an international financial institution that provides loans to developing countries for capital programs.
  • The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), whereas the former incorporates these two in addition to three more: International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).
  • The International Bank for Reconstruction and Development (IBRD) has 188 member countries, while the International Development Association (IDA) has 172 members.Each member state of IBRD should be also a member of the International Monetary Fund (IMF), and only members of IBRD are allowed to join other institutions within the Bank (such as IDA).
  • For the poorest developing countries in the world, the bank's assistance plans are based on poverty reduction strategies; by combining a cross-section of local groups with an extensive analysis of the country's financial and economic situation, the World Bank develops a strategy pertaining uniquely to the country in question.

• The Lender of Last Resort

  • Federal Reserve as the "lender of last resort" extends credit to financial institutions unable to obtain credit elsewhere.
  • The Fed's role as lender of last resort played a large role in the aftermath of the 2008 Financial Crisis.
  • The Fed provided loans to support a number of institutions from collapse, including AIG, Bank of America, and Morgan Stanley.
  • In the United States, the Federal Reserve serves as the lender of last resort to those institutions that cannot obtain credit elsewhere and the collapse of which would have serious implications for the economy.
  • According to the Federal Reserve Bank of Minneapolis, "the Federal Reserve has the authority and financial resources to act as 'lender of last resort' by extending credit to depository institutions or to other entities in unusual circumstances involving a national or regional emergency, where failure to obtain credit would have a severe adverse impact on the economy. " Through its discount and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals.

• Credit Unions

  • Credit unions are cooperative organizations that aim to meet the financial needs of its members — not to profit from them.
  • Each institution decides who it will serve.
  • Because credit unions are not-for-profit financial institutions, their focus is serving the financial needs of their members and not making a profit.
  • Fewer Fees: Credit unions tend to offer fewer and sometimes reduced fees for their products and services compared to those of other financial service institutions due to their not-for-profit, cooperative structure.
  • Credit Unions are generally smaller financial institutions than banks and are not-for-profit institutions.

• The Federal Deposit Insurance Corporation (FDIC)

  • Curry (Comptroller of the Currency), and Richard Cordray (Director, Consumer Financial Protection Bureau).
  • The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by insuring deposits, examining and supervising financial institutions for safety and soundness and consumer protection, and managing receiverships.
  • This is accomplished by identifying, monitoring, and addressing risks to the deposit insurance funds and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
  • The FDIC receives no Congressional appropriations; it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S.
  • The FDIC Improvement Act of 1991 limits regulators' discretion as to when to close troubled financial institutions (FIs).

• Banking Crises and Centralized Reserve Enforcements

  • One of the Federal Reserve's duties is to regulate financial institutions, such as bank-holding companies and state member banks.
  • If the Federal Reserve determines that a state member bank or bank holding company has problems that affect the institution's safety and soundness or is not in compliance with laws and regulations, it may take a supervisory action to ensure that the institution undertakes corrective measures.
  • In some situations, however, the Federal Reserve may need to take an informal supervisory action, requesting that an institution adopt a board resolution or agree to the provisions of a memorandum of understanding to address the problem.
  • For example, if an institution has significant deficiencies or fails to comply with an informal action, the Federal Reserve may enter into a written agreement with the troubled institution or may issue a cease-and-desist order against the institution or against an individual associated with the institution, such as an officer or director.
  • If the Federal Reserve determines that a state member bank or bank holding company has problems that affect the institution's safety and soundness or is not in compliance with laws and regulations, it may take a supervisory action to ensure that the institution undertakes corrective measures.

• Savings and Loan Associations (S&Ls)

  • A savings and loan association is a special kind of deposit institution that only participates in a subsection of financial activities.
  • A savings and loan association (or S&L), also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans.
  • The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland, and some Commonwealth countries include building societies and trustee savings banks.
  • They are often mutually held (often called mutual savings banks), meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization like the members of a credit union or the policyholders of a mutual insurance company.

• The Discount Rate

  • The Fed makes loans to depository institutions and charges different discount rates for each of discount windows.
  • The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from the Fed's lending facility, the discount window.
  • The Fed offers three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate.
  • Under the primary credit program, loans are extended for a very short term (usually overnight) to depository institutions in generally sound financial condition.
  • Depository institutions that are not eligible for primary credit may apply for secondary credit to meet short-term liquidity needs or to resolve severe financial difficulties.

• Financial Accounting

  • Financial Accounting is a process of summarizing recorded financial data and publishing it for people outside the organization to analyze.
  • No single word is more relevant to financial accounting than "information."
  • Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as:
  • In addition, financial accounting records and financial statements are essential sources of information for the preparation of tax returns.
  • Examples of national associations are the Institute of Certified Public Accountants of Kenya (http://www.icpak.com/), the Malaysian Institute of Certified Public Accountants (http://www.micpa.com.my/), and the South African Association of Chartered Accountants (https://www.saica.co.za).

• Why an accounting system is important

  • The term they use to describe these two perspectives is financial accounting and managerial accounting.
  • "Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders.
  • "Financial accountancy is governed by both local and international accounting standards".
  • In addition, financial accounting records and financial statements are essential sources of information for the preparation of tax returns.
  • Examples of national associations are the Institute of Certified Public Accountants of Kenya (http://www.icpak.com/), the Malaysian Institute of Certified Public Accountants (http://www.micpa.com.my/), and the South African Association of Chartered Accountants (https://www.saica.co.za).