types of financial institutions
DESCRIPTION
TYPES OF FINANCIAL INSTITUTIONS. Commercial banks. These are represented by group of societies registered under the act of the states relating to co-operative societies. Co-operative banks. Set up in India since British days. - PowerPoint PPT PresentationTRANSCRIPT
TYPES OF FINANCIAL INSTITUTIONS
Banking Institutions
Organized sector
Un-organized sector
NON-BANKING
INSTITUTIONS
Organized institutions
Unorganized institutions
Banking Institutions
Organized sector
Commercial banks
Co-operative
banks
Foreign Banks
Un-organized sector
Indigenous bankers
Money lenders
Commercial banks
Commercial Banks
Private sector banks
wherein 51% of the ownership lies in private
hands E.g. ICICI
Public sector banks
wherein 51% of the ownership lies in government
hands. E.g. SBI
Co-operative banksThese are represented by group of societies registered under the
act of the states relating to co-operative societies
CO-OPERATIVE CREDIT
SOCIETIES
Rural credit societies which are primarily agricultural
Urban credit societies which
are primarily non-agricultural
Foreign Banks
• Set up in India since British days.
• These are the banks which are registered outside India but have their operations and branches in India.
• Example : Barclays bank, CITI bank etc.
Indigenous bankers
• Forefathers of modern commercial banks. • Local bankers. • Raise the funds from the public and lend it also. • E.g.Gujrati Shroffs or Marwari, in South India they may
be called Chettiars, In North India they may be called Sahukars etc.
• Provide finance for productive purposes to trade, industries and agriculturalists.
Money lenders
• Depend entirely on their own funds for the working capital. • May be rural or urban, professional or non-professionals.
The main characteristics of money lenders are:
They use their own fundsTheir clients are mainly the weaker sections of the society.Their loans are highly exploitative because they charge high rate of
interest. Their operations are highly regulated.The credit is prompt and flexible.
NON- BANKING INSTITUTIONS
Organized financial
institutions
Development Finance
Institutions
Investment Institutions
Unorganized financial
institutions
NBFCs
Development Finance Institutions
• Financial institutions set up for the development of the economy.
• Provide medium to long term funds so as to meet long term growth of the nation.
• E.g. IDBI, SIDBI etc.
Investment Institutions
• Includes those financial institutions which mobilize savings of the public at large and invest in corporate and government securities.
• These include: LIC, GIC, etc.