تبسيط financial institutions

    Contents

    1 concept of financial institutions
    2 The importance of financial institutions
    3 types of financial institutions
    4 international financial institutions
    5 advantages of successful financial institutions

 
An organization is an entity that consists of a group of individuals who cooperate with each other to produce a good or service that is provided to a group of beneficiaries called consumers; There is a concerted effort among these individuals to obtain high-quality products and services that satisfy consumers and make them eager to seek them.
Depending on the activity of the institution or the service it provides, there are many types of institutions or business establishments, including: industrial, commercial, agricultural, agricultural, tourism, telecommunications, and many other institutions.
The concept of financial institutions
It is a business establishment that has a group of assets and liabilities like other institutions, but it is distinguished that its assets are financial assets (securities and loans, for example) instead of fixed and current assets in other institutions, and its liabilities are also financial liabilities in the form of savings and deposits of various kinds, and therefore, it is possible The definition of a financial institution as every business establishment whose assets and liabilities are financial, and deals with money in give and take.
It is clear from the previous definition that financial institutions – like other industrial and commercial economic establishments and establishments – are working to provide a specific product at a price for this product, and here the money is the commodity or product provided by financial institutions, and as is known, the price of obtaining the loan is the rate Benefit.

The importance of financial institutions
Financial institutions are among the vital institutions that are important in every economy and one of its main components, and one of the reasons for its growth and progress. It works to reconcile who owns the money and has no ideas to invest in and whoever has the ideas and does not have the funds to implement them.
Financial institutions obtain funds from savers in the form of deposits and provide them to project owners and others in the form of loans (financing and consumer).
As one of the most important components of the financial and economic system, financial institutions provide a set of important services for the financial system, including:
Credit: It is the process of providing funds to consumers in order to pay for their purchases of different goods and services, such as payment and withdrawal cards, in addition to providing financing for construction and building and capital investments, and this type of investment raises society’s productivity, and then raises the standard of living for individuals.
Payment: Financial institutions provide several systems for making payments and making deposits and withdrawals, in addition to electronic payment services.
Money savings: Through credit and payment operations, cash is available in the financial system, which is the most important means of exchange and a store of values.
Savings: Financial institutions are encouraged on the topic of saving money, and then investing savings in different investments. When the financial system needs additional funds, financial institutions raise interest rates on different deposits, which makes savers tend to increase their savings with those institutions, and vice versa.
Types of financial institutions
Of course, given the multiple services provided by financial institutions, they can be classified into two main types, namely:
Banking financial institutions: These are the financial institutions that play the role of financial intermediary, and their mission is to obtain funds by accepting deposits, and then to grant those funds in the form of loans to applicants for financing. An example of a financial financial institution: commercial banks.
Non-banking financial institutions: they provide their financial services to companies in the form of debt underwriting, or trading in securities, and everything related to stocks, financing investments in various sectors, providing advisory services, and many others. Examples of non-bank financial institutions: investment banks, insurance companies (which provide protection against any loss against certain amounts paid to the company in installments), pension and pension funds, and real estate finance companies.

The main difference between the two types of financial institutions is that banking financial institutions operate by financial intermediation. Deposits in all its forms are accepted, and then they are granted to the applicants in the form of loans, while non-bank financial institutions do not work with financial intermediation, but rather provide the necessary financing for different investments without obtaining any kind of deposits, as they obtain the funds in other ways, such as obtaining For example, monthly premiums or a subscription fee collection from beneficiaries.
International financial institutions
They are permanent international organizations consisting of membership of a group of countries to achieve a set of common goals among them, and these facilities are managed by an independent legal personality.
Most of these institutions were established during the Second World War with the aim of financing private and governmental projects, facilitating the flow of funds, encouraging international investment, securing the freedom of movement of capital, and working to achieve a balance in the balance of payments and stabilization of exchange rates. Currently, there are many international financial institutions at the regional and international levels, including:
International financial institutions at the regional level: Arab Bank for Economic Development in Africa, Arab Monetary Fund, Arab Fund for Economic Development.
International financial institutions at the international level: International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC).
Features of successful financial institutions
In order for financial institutions to be successful in their work and provide the level of service and quality that customers demand, they must have a set of advantages, the most important of which are:
Having a clear vision and strategic goals.
Her interest in human resources in all respects, starting with