Management and Organizational Studies 2277A/B Chapter Notes - Chapter 5: Money Management, Deposit Insurance, Credit Union

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Financial institutions that accept deposits from and provide loans to individuals and businesses. The interest rate paid on loads will always be greater than that earned on deposits. They use the difference to generate pro ts for their shareholders. Very skilled in assessing the ability for borrowers to repay loans. Three types of depository institutions: chartered banks, trust and loan companies, Credit unions and causes populaires: non-depository institutions. Financial institutions that do not offer federally insured deposit accounts but provide various other nancial services. The main types of these institutions are finance and lease companies, mortgage. They offer a diverse set of nancial services to individuals or rms: example: rbc: wealth management, investors and treasury, insurance, capital. A: non-depository institutions that specialize in proving personal loans or leases to. Finance and lease companies individuals: they charge higher rates on loans because the people they loan to have a higher tendency to default on them.