ppt money and banking (depository and depository institution , insurance co.)
TRANSCRIPT
FINANCIAL INSTITUTION❑ DEPOSITORY INSTITUTION
• MUTUAL SAVING BANK• CREDIT UNION• SAVING AND LOAN ASSOCIATION• COMMERCIAL BANK
❑ NON-DEPOSITORY INSTITUTION• CONSUMER FINANCE COMPANIES• INSURANCE COMPANIES• PENSION FUND• MUTUAL FUNDS
CONTENT
FINANCIAL INSTITUTION
Any institution that Collect Money an puts in into assets such as:
1.Bank deposits2.Stocks3.Bond 4.Loan
Types Of Financial Institution:-
5.Depository Institution
6.Non-depository Institution
Depository Institution:- A financial institution that obtains its fund mainly through deposited from the public. It may be either for profit or non profit. This include:
❑ Commercial Bank❑ Saving And Loans Association❑ Credit Union❑ Mutual Saving Bank
INDIVIDUAL
ORGANIZATION
BUSINESSES
MORTAGE
SCAR
LOANSBUSINESSES LOAN
COMMERCIAL BANK
SAVING AND LOAN ASSOCIATION
This institute is similar to commercial bank. They offered
Mortgaged Loan, Housing Loan and other credit to
individual and families
CREDIT UNIONA cooperative association that makes Small Loans to its member at low interest rate and offers other banking services as saving and
checking account
Mutual saving bank➢ It is owned by an operated for the benefit of its depositor.➢ Profit are distributed in proportion to the amount of business each participants does with the company.➢ Organized mainly for saving and homes loan.
NON-DEPOSITORY INSTITUTE
Government or private organization that serve as an intermediary between savors and barrows but does not accept time deposited.
Insurance
CompaniesConsumer Finance
Company
Pension Fund Mutual
Fund
INSURANCE COMPANIESInsurance companies protect their customer from financial distress that can be caused by
unforeseen event such as: accident or premature death
CONSUMER FINANCE COMPANY
They provide loans to people or businesses using the insurance of short term securities especially commercial paper, sometimes mortgagers as a source of fund consumer finance companies provide loan direct to consumer and charge a high interest rate
Pension fund
They receive contribution from individual and employers during their employment provide a retirement income for the individual.
MUTUAL FUND
An investment vehicle that is made up of a pool of money collected from many investors for the purpose of investing in stock, bonds, alternatives and similar assets.
Key Benefits Of Mutual Funds
Professional Money Management
DiversePortfolio
AffordabilityLiquidity
Well Regulated Industry
Mutual Funds Types Equity Funds
Money Market / Liquid Funds
Hybrid Funds
EQUITY FUND
An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively index fund managed. Equity funds are also known as Stock funds.
Money Market & Liquid Fund
Money market basically refers to a section of the financial market where financial instruments with high liquidity and short-term maturities are traded. Money market has become a component of the financial market for buying and selling of securities of short-term
maturities, of one year or less, such as Treasury bills and Commercial papers.
Hybrid Fund
A hybrid fund is a category of mutual fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed.
DEFINITIONAn arrangement by which a company or the state to provide a guarantee of compensation for Specified Loan, Damage etc. of a specific premium
TYPES OF INSURANCEGeneral insurance
Life insurance
GENERAL INSURANCE
Property insurance is a policy that provides Financial Repayment to the owner or renter of a structure and its contents, in the event of Damage Or Theft. Following are the types are:
Fire InsuranceCasualty InsuranceMarine InsuranceFidelity Insurance
LIFE ASSURANCEInsurance that pays out a sum of money either on the DEATH of the insured person or after a set period. Life assurance is of the following types:
Life Term Insurance
Whole Life Insurance
Endowment Insurance
Personal Accident Insurance