What do financial institutions do?

the financial institution deals with finance-related services. These are gaining popularity day by day nowadays. The attractive rate of returns on the customer’s investment is very demanding. It also provides specialized services like hire purchase and leasing, etc. The simple and organized procedure of the institutions is becoming very complementary. It provides a broad range of business opportunities. The goal of all the institutions is different and they provide different services and have different levels of risk associated with it. All the financial institutions have unique features and it works in a specialized way. The financial institution is gaining immense popularity in broadening the finance-related services in the country.
What is the role and feature of financial institutions?

Promoting the direct investment by the customers and making them understand the risk associated with that as well

Helping in forming the liquidity of the stock in case of an emergency in the financial markets

Reducing the cost of financial services provided

·        Advising the customers on how to deal with the equity and the other securities bought and sold in the market.

·        Helping to improvise decision making because it follows a systematic approach to calculate all the risks and rewards.
A crucial part of this issue is related to the performance or the policy of administration and management of these institutions. In this section, whether these institutions adopt policies such as banks or other institutions, will be processed:
Financial institutions work like banks in some ways. They give loans and advances to the customers and also set a platform for the customers to do some investments. The customers get exciting offers and returns from them and therefore these institutions are gaining popularity. It also provides consultancy services to the clients on their investments related to the financial markets where the huge amount of risk is involved. Moreover, the customers who are handing over their hard-earned monies to such institutions should check for the history and origin of this financial institution.[1]
Their Institutional Framework 

Financial institutions serve as the intermediary that allocates resources from savers to investors across economic sectors. Due to the close linkage with domestic and external economic sectors, (for example: the BOT, Thailand is one of the great development success stories. Due to smart economic policies it has become an upper middle income economy and is making progress towards meeting the Sustainable Development Goals[2].) therefore supervises financial institutions with the objectives to ensure the followings:
1.     Financial institutions serve the need of real economy efficiently,
2.     Financial institutions are competitive,
3.     Individual financial institution and the overall financial institution system remain sound and stable.
In obtaining the three aforementioned objectives, the following institutional frameworks have been drawn: 
·       to ensure that financial institutions are  and have proper risk management system 
·       to enhance overall efficiency of financial institutions 
·       to ensure good corporate governance of financial institutions 
·       to ensure fairness of financial institutions in doing business with their customers, and 
·       to supervise financial institutions in order to safeguard economic and financial stabilities