The Financial Institution

The financial institution is an institution that serves as an intermediary between parties who have surplus funds to the cash-strapped party . Thus , financial institutions act as intermediaries ( intermediaries ) between the two parties , to make financial transactions easier and more efficient .

With the emergence of this institution , then the excess funds no longer need to look for those who are short of funds so that the funds can be used directly and earn income by way of interest . Likewise, the parties do not need to find a funding shortfall that the excess funds to get a loan to run its activities . Thus , they become more transactions easily and efficiently .
Types of Financial Institutions in Indonesia

There are several types of financial institutions in Indonesia :
  

1. Bank
An institution that acts as an intermediary between parties to the shortage of surplus funds of funds, where the bank receives the funds on deposit ( or other form of savings ) and distribute it in the form of credit .

2. Isurance
An institution that provides protection ( can be any damage, loss , death , and so forth ) to the client in the form of a dependent , the insurance company receives premiums from customers .

3. Mutual Funds
 Is a financial institution that plays a role in collecting funds from public investors ( or investors ) to invest in a portfolio of securities , where the fund is managed by investment managers . It can help people who do not understand about trading securities to invest more safely .

4. Pension Fund
An institution that plays a role in managing and running a program that promised pension benefits for its customers

5. Venture Capital ( Venture Capital / VC )
That is a business entity engaged in the business of financing or equity participation in a company that received a capital assistance for a specified period . The Company financed this is generally a young company (business startup )

6. Finance Companies ( Leasing and Factoring )
That business entity established to undertake leasing , factoring , consumer finance , and / or business credit card .


Reference:
cyberinquirer.com
http://www.manajemenperusahaan.com/lembaga-keuangan/