What are depository institutions, Finance Basics

What are depository institutions?

Depository institutions: intermediaries along with an important proportion of their funds derived through customer deposits as consists of: commercial banks, credit unions and savings institutions.

Commercial banks:

It accepts deposits (liabilities) to create loans (assets) as well as to buy government securities.

Credit unions:

These are non-profit institutions mutually organised and also owned through their members (depositors).

Contractual savings institutions:

Contractual savings institutions obtain funds at periodic intervals onto a contractual basis.

Posted Date: 9/3/2013 7:59:53 AM | Location : United States

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