Insurance companies protect individuals and corporations from risks by offering products like life, property, and casualty insurance. Securities firms and investment banks raise funds through debt and equity securities for corporations and governments, and facilitate trading of securities. Financial institutions include commercial banks that accept deposits and make loans, as well as non-bank institutions that transform cash into other financial instruments.

1. Insurance Companies
Protect individuals &
corporations (policyholders) Securities Firms &
Depository Institutions
from adverse events. Investment Banks
Commercial & other Banks
Life insurance, Property- Raise debt & equity securities
(accepts deposits and makes
Casualty insurance…) for corporations or
consumer, commercial and real governments; originate,
estate loans) underwrite & place securities in
(Savings associations, Savings money & capital markets.
Banks, Credit Unions…)
Financial
Households/ Institutions
(brokers Corporations
individuals
or
Cash
asset
transformers) Equity & debt
Deposits & insurance policies Cash
Mutual Funds Finance Companies
Financial intermediaries that pool the Make loans to both individuals &
financial resources of individuals and corporation; services include:
companies and invest in diversified consumer lending, business lending,
portfolios of assets. mortgage financing. (do not accept
Pensions Funds (private, public deposits but rely on short- and long-
[SSS, GSIS]) term debt as source of funds)