Financial Institution:

A financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are regulated by the government. Broadly speaking, there are three major types of financial institutions:

1. Deposit-taking institutions (broadly known as Banking institutions) that accept and

manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies

2. Insurance companies and pension funds; and 3. Mutual fund or investment funds.

Banking Institutions:
According to Bank Holding Company Act of 1956, a bank is defined as any depository financial institution that accepts checking accounts (checks) or makes commercial loans, and its deposits are insured by a federal deposit insurance agency. In another word banks are usually a corporation that accepts deposits, makes loans, pays checks, and performs related services for the public. A bank acts as a middleman and earns money by reinvesting deposited funds in longerterm assets. A Commercial Bank: A Commercial Bank invests funds gathered from depositors and other sources principally in loans. An investment bank manages securities for clients and for its own trading account. In making loans, a bank assumes both interest rate risk and credit risk. The banks operating in our country can be classified into the following categories:

Nationalized Commercial Banks Sonali Bank Limited Janata Bank Limited

Rupali Bank Limited Agrani Bank Limited

 Foreign Commercial Banks Citi Bank, N.A State Bank of India HSBC Standard Chartered Bank Dutch-Bangla Bank Limited Private Commercial Banks Al-Arafah Islami Bank Ltd. City Bank Limited Dhaka Bank Limited Uttara Bank Limited IFIC Bank Limited Islami Bank Bangladesh Limited National Bank Limited National Credit and Commerce Bank Limited Prime Bank Limited Pubali Bank Limited Social Islami Bank Limited Southeast Bank Limited Standard Bank Limited United Commercial Bank Ltd. Eastern Bank Limited Merchant Bank Fidelity Assets and Securities Company Ltd. Other Banks and financial Institutions BRAC Bank Limited Grameen Bank Bangladesh Krishi Bank Investment Corporation of Bangladesh Rajshahi Krishi Unnayan Bank

Non Banking Financial Institutions (NBFIs):

In Bangladesh, NBFIs are new in the financial system as compared to banking financial institutions (BFIs). A total of 25 NBFIs are now working in the country. The NBFIs sector in Bangladesh consisting primarily of the development financial institutions, leasing enterprises, investment companies, merchant bankers etc. The financing modes of the NBFIs are long term in nature. NBFIs have immense importance in the economy. In addition, non-bank financial sector is important to increase the mobilization of term savings and for the sake of providing support services to the capital market. Top most NBFIs operating in our country are

United Leasing Company Ltd Industrial Development Leasing Company (IDLC) of Bangladesh Ltd.
Industrial Promotion and Development Company (IPDC) of Bangladesh Union Capital Limited Uttra Finance and Investments Limited International Leasing and Financial Services Limited GSP Finance Company (Bangladesh) Limited Prime Finance and Investment Ltd Delta Brac Housing Finance Corporation Ltd. People's Leasing and Financial Services Ltd Infrastructure Development Company Limited (IDCOL) National Housing Finance and Investments Limited

Insurance Companies & pension Funds:

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. In another word Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. The insurance companies operating in our country can be categorized into two types

General Insurance Companies Sadharan Bima Corporation Agrani Insurance Company Limited Asia Pacific General Insurance Company Ltd. Bangladesh General Insurance Co. Ltd.
Bangladesh National Insurance Co. Ltd. Central Insurance Co. Ltd.

 City General Insurance Co. Ltd Eastern Insurance Co. Ltd Federal Insurance Co. Ltd Green Delta Insurance Co. Ltd Janata Insurance Co. Ltd Karnafully Insurance Co. Ltd Meghna Insurance Co. Ltd Mercantile Insurance Co. Ltd Nitol Insurance Co. Ltd Northern General Insurance Co. Ltd Paramount Insurance Company Ltd. People's Insurance Co. Ltd Phoenix Insurance Co. Ltd Pioneer Insurance Co. Ltd Prime Insurance Co. Ltd Progoti General Insurance Co. Ltd Provati Insurance Co. Ltd Purabi General Insurance Co. Ltd Reliance Insurance Co. Ltd Rupali Insurance Co. Ltd United Insurance Co. Ltd

Life Insurance Companies: Jiban Bima Corporation NATIONAL LIFE INSURANCE CO. LTD. Metlife Alico (American Life Insurance Co.) Delta Life Insurance Co. Ltd. Prime Islami Life Insurance Limited. Investment Funds or Mutual Funds: