IFS UNIT 3: Financial Institutions and NBFCs | B.Com Third semester
Unit-3 Financial Institutions and NBFCs Financial institutions Meaning Financial institutions are the intermediaries who facilitate smooth functioning of the financial system by making investors and borrowers meet. They mobilize savings of the surplus units and allocate them in productive activities promising a better rate of return. Financial institutions also provide services to entities (individual, business, government) seeking advice on various issue ranging from restructuring to diversification plans. They provide whole range of services to the entities who want to raise funds from the markets or elsewhere. Financial institutions are also termed as financial intermediaries because they act as middle between savers by accumulating Funds them and borrowers by lending these fund. Definition: Financial institution is defined as “an establishment that focuses on dealing with financial transactions, such as investment, loans and deposits.” In other words, the fin...