Financial Institutions

MBA Superior University, Lahore

Financial Institutions
Finance is study of money- its nature, creation, behavior, negotiations and administration. Financial system refers to all activities dealing in finance organized into a system. Financial system consists of Financial Institutions, Financial Market and Financial Instruments.

Financial Institutions
Those institutes which mobilize and transfer savings or funds from surplus units to deficit units. These institutions participate in financial market and mobilize savings from surplus units.

Financial Instruments
Financial instruments represent a claim on the repayment of principal at a future date and/or payment of periodic sum in the form of interest or dividend. Financial assets are not consumed, what is bought and sold is their use for a particular period of time.

Financial Markets
Classification with reference to tenor: Money Market Capital Market Classification with reference to nature of financial asset: Primary Market Secondary Market

Development Finance Institute (DFI)

DFI is primarily engaged in providing long term financial assistance to industrial units, usually of all categories. Financial assistance is provided in various forms like extending term loans, subscription to shares, underwriting capital issue, guarantee of term loan etc.