Bank and other financial institutions

During Teaching week 2 we were introduced to a very interesting topic which is called “ Bank and other financial institutions”
There are four Major Financial institutions:
1. Depository institutions;
2. Contractual saving organizations;
3. Securities firms;
4. Financial firms.
There will be many sub-institutions in each of these categories. Depository institutions, such as commercial banks, savings and loan associations (S&Ls), savings banks, and credit unions, are particularly vulnerable. Furthermore, the two most common types of contractual savings institutions are insurance companies and pension funds. Investment firms, investment banking businesses, and brokerage firms are all examples of securities firms. Finance corporations and mortgage banking organizations will receive increased attention within financial institutions.
We want to emphasize that banks were given more emphasis during the lecture and seminar as important types of financial institutions. Banks are frequently considered in terms of liquidity and insolvency. The ability to satisfy depositor withdrawals and pay off other liabilities as they become due is reflected in the former. The latter refers to a bank's capacity to keep its assets valued higher than its liabilities.
All types of financial institutions are intermediary for individuals, government and businesses
In terms of vocabulary, the subject appears to be rather complicated.
Concerning the second topic, we believe that commercial banking and investment banking should be separated for various reasons. For starters, they have different goals and serve different clients.
Because investment banking generates better returns, there may be a conflict of interest if commercial banks are allowed to participate in investment banking activities as well. Commercial banks may also begin to take on too much risk with their own money and the money of their customers.