Traditional Culture Encyclopedia - Traditional culture - What are the functions of financial institutions?
What are the functions of financial institutions?
They mainly form a source of funds by issuing indirect securities, and then invest these funds in financial assets such as loans and income securities.
They are an important part of the financial system and play an important role in the whole national economy. By dredging and guiding the flow of funds, they can promote the allocation of economic and social resources and improve the efficiency of the whole social economy.
There are many forms of financial intermediary, but as an intermediary for effective financing funds to flow from surplus units to deficit units and realize resource transfer, banks are the most typical.
Its important functions are: as a credit intermediary to finance funds and effectively transfer social resources; Create credit currency and expand credit;
Provide a wide range of financial services.
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