Answer:

Financial institutions, otherwise known as banking institutions, are corporations that provide services as intermediaries of financial markets. Broadly speaking, there are three major TYPES of financial institutions:[1][2]

1). Depository institutions – deposit-taking institutions that ACCEPT and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;

2). Contractual institutions – insurance companies and pension funds

3). Investment institutions – investment banks, underwriters, brokerage firms.

Financial institutions can be distinguished broadly into two categories ACCORDING to ownership STRUCTURE:

Commercial Banks

Cooperative Banks

Some experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar BUSINESS strategies. A consequence of this might be fewer banks serving specific target groups, and small-scale producers may be under-served.[3]