ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The institutions that channel funds from savers to users are called financial intermediaries. They include commercial banks, savings banks, savings and loan associations, and such nonbank institutions as credit unions, insurance companies, pension funds, investment companies, and finance companies.

Detailed explanation-2: -A financial institution is an intermediary that channels the savings of individuals, businesses, and governments into loans or investments.

Detailed explanation-3: -What are the examples of financial intermediaries? Some of the examples are commercial banks, stock exchanges, mutual fund companies, insurance companies, credit unions, non-banking finance companies (NBFCs), pension funds, building societies, financial advisors, investment bankers, escrow companies.

Detailed explanation-4: -A thrift bank–also called a Savings and Loan Association (S&L)–is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers.

Detailed explanation-5: -Commercial Banks. Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Savings and Loans/Savings Banks. Credit Unions.