Different types of Financial Intermediaries

1. Different types
of Financial
Intermediaries
Sazzad Hossain Saad
Green University of
Bangladesh.
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2. Commercial Banks
 SU provides funds to CB, in return CB gives
them their own financial instruments;
 CB provides the fund to DU, in return DU
provide them their Financial instruments;

3. Types of Commercial Banks
 Nationalized Commercial Banks;
 Private Commercial Banks;
 Foreign Commercial Banks.

4. Savings and Loans
Associations
 They can not provide loan to any
business,
 They only can provide loan to individual,
family, consumer loan,
 They have a specialization,
 Ex: Residential mortgage loan.

5. Credit Unions
 Funds are collected from members.
 They can not provide funds to any
business or ordinary individuals
 They only can provide loan to their
members
 Ex: Cooperative Bank.

6. Pension Fund
 SU provides funds to PF, in return PF gives
them their own financial instruments;
 PF provides the fund to DU, in return DU
provide them their Financial instruments;

7. Insurance Company
 SU provides premium to IC, in return IC
provides them insurance policy,
 IC provides fund to DU, in return DU
provides shares, Bond etc. of DU.

8. Mutual Funds
 SU provides fund to MF, in return MF gives
their FI.
 MF provides fund to DU, in return DU
provides shares, Bond etc. of DU.