Financial Institution (FI)

Financial Institution (FI) is an umbrella term that refers to the collection of institutions that are active in the (private and/ or public) financial markets.

A financial institution typically provides a wide variety of deposit, lending, and investment products to individuals, businesses, or both.

As the term covers a wide spectrum of activities, it is classified for regulatory, oversight, and other purposes.

A possible classification would be: central banks, retail and commercial banks, internet banks, credit unions, savings and loan associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies.

Related Terms

Mortgage Backed Securities (MBS)

A mortgage-backed security (MBS) provides investors with a monthly pro-rata distribution of any principal and interest payments made by homeowners. Types of MBS Pass-throughs In a pass-through MBS,...

MBA Mortgage Applications

The MBA (Mortgage Bankers Association) Mortgage Applications Index is a weekly report that tracks the volume of mortgage applications in the U.S.

Quantity Theory of Credit

The Quantity Theory of Credit is an economic theory that emphasizes the role of credit creation by banks in influencing the economy.

MBA Weekly Applications Survey

The Mortgage Bankers Association (MBA) Weekly Applications Survey is a weekly survey of mortgage application activity in the U.S. housing market.

Central Bank

A central bank is an organization that manages the currency of a country or group of countries and controls the money supply. Central banks, also called reserve banks, came into being because their...