In financial economics, a financial institution acts as an agent that provides financial services for its clients. Financial institutions generally fall under financial regulation from a government authority.
Types of Financial Institutions
Common types of financial institutions in Pakistan include Banks, Investment Companies, Insurance Companies, Leasing Companies, Venture Capital & Discount Houses, Housing Finance Companies, and Mutual Funds.
Bank
A bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money, and processing transactions and the creating of credit. Major players of the banking sector are categorized in the following heads: * Central Bank * Nationalized Scheduled Banks * De-Nationalized Scheduled Banks * Specialized Banks * Private Scheduled Banks * Foreign Banks * Investment Banks * Micro Finance Banks * Islamic Banks Central Bank
A central bank, reserve bank or monetary authority, is an entity responsible for the monetary policy of its country or of a group of member states, such as the State Bank in Pakistan. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a "bailout" lender of last resort to the banking sector during times of financial.
Nationalized Scheduled Banks Nationalized scheduled banks are those banks which are registered with SBP and are public owned enterprises. The SBP give directions to these banks and they are required to work according to this direction. Furthermore, scheduled banks are permanent members of SBP. The nationalized scheduled banks are: * National Bank of Pakistan * Habib
