What are bank and non-bank financial institution, compare them briefly and explain each of them.

"Warning: Saving May Be Hazardous to your Wealth" Financial institutions such as banks, insurance companies and pension funds are also known as 'Financial Intermediaries'. They dominate the financial scene all around the globe. It is virtually impossible to spend or save or lend or invest money nowadays without getting involved with some kind of financial intermediary in one way or another. Although all have similar functions, yet they are different. They are as follow... Banks …

…yielding of larger denomination obligations. <Tab/>Stock Brokerage Houses Usually, the lending activities here are performed by stockbrokers. These people usually offer loans to their customers at lower interest rates than banks, or also known as margin loan. The lower rate is because these stockbrokers are being supported by collaterals, such as the stocks and bonds in the customer's portfolio and also, such collaterals are of high quality and highly liquid.