FINC 3340

1
FINC 3340

• Overview of Financial Institutions

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Types of Financial Institutions

• Commercial banks
• Thrifts
• Insurance companies
• Securities firms and investment banks
• Finance companies
• Mutual funds
• Pension funds
• FOR EACH How does this institution function in
  the financial system? Are its activities direct
  or indirect?

3
Risks Faced by Financial Institutions

• Interest Rate risk
• Foreign Exchange risk
• Market risk
• Credit risk
• Liquidity risk
• Off-balance-sheet risk
• Operational risk
• Sovereign risk
• Insolvency risk