Bank vs Financial Institution
Investopedia defines, FI as a financial establishment that focuses on dealing with financial transactions, such as investments, loans and deposits. Conventionally, financial institution are composed of organizations such as banks, trust companies, insurance companies and investments dealers. Almost everyone has deal with a financial institutions as a regular basis. Everything from depositing money to taking out loans and exchange currencies must be done through financial institutions.
Where Bank is financial institution licensed a receiver of deposits and distributor of loans. They pay an interest on deposits and take interest from loans. They also give other credit facilities to individuals for their business/personal requirements.
The Core Differences:
- A bank is one of many types of financial institution.
- A bank is a financial institution, but a financial institution is not a bank
Features of Bank:
- Accepting Banks
- Lending
- Other Bank related services
Types of FI ( Financial Institution):
- Bank
- NBFC ( Non Bank Financial Institution)
- Insurance Companies
- Pension Funds
- Mutual Funds
- Hedge Funds
- Other finance related institutions
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Good one... keep going... keep writing...try to make the article bit short next time thus will bring some more audience
Sorry for the delay , beautiful explanation younger..........
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