Page 31 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services Manpreet Kaur, Lovely Professional University

Notes Unit 3: Financial Institutions

CONTENTS
Objectives
Introduction

3.1 Definition of Financial Institutions
3.2 Types of Financial Institutions
3.3 Role in Economic Development

3.4 Commercial Banks
3.5 Emergence of Private Sector Bank after Liberalization
3.6 Financial Innovation in Commercial Banks
3.7 Assets and Liabilities Management by Commercial Banks
3.8 Summary

3.9 Keywords
3.10 Self Assessment
3.11 Review Questions

3.12 Further Readings
Objectives

After studying this unit, you will be able to:
Define financial institutions
Explain types of financial institutions
Discuss the role of financial institutions in economic development

List the commercial banks
Discuss emergence of private sector bank after liberalization
Know the financial innovation in commercial banks

Describe the assets and liabilities management by commercial banks
Introduction

Financial sector plays an indispensable role in the overall development of a country. The most
important constituent of this sector is the financial institutions, which act as a conduit for the
transfer of resources from net savers to net borrowers, that is, from those who spend less than
their earnings to those who spend more than their earnings. The financial institutions have
traditionally been the major source of long-term funds for the economy. These institutions
provide a variety of financial products and services to fulfill the varied needs of the commercial
sector. Besides, they provide assistance to new enterprises, small and medium firms as well as to
the industries established in backward areas.

26 LOVELY PROFESSIONAL UNIVERSITY