Financial institutions are important for any country because they will be facilitating liquidity in the flow of credit system and It will also be helpful in order to provide with various types of assistance facilities except from banking intermediaries like being an underwriting entity when issue of a initial public offer, they are also helpful in determination of various kinds of valuation for mergers and acquisitions.

finance is always known as blood of a economy and this system is very important in order to help the economy to have a better credit structure and growth structure and facilitating a large number of market participants to have an access to the finance and credit and they will be also ensuring liquidity into the system so that people can realise their earning in an efficient way and it will also be helpful in order to contain any kind of credit crunch or financial squeeze.

Functions of Financial institutions are as follows-

A. They will be acting as intermediaries between the borrowers and the lenders and facilitating credit.

B. They will also be helpful in order to determine the monetary policy of an economy and they will be helpful in order to determine the money flow in the economy.

C. Financial institutions also include investment bankers who will be acting as underwriters in the primary market and they will also be helping in finding the valuation of various companies.

D. This can even facilitate foreign funding and this will be helpful in order to provide the the investors with various kinds of brokering services also.

E. They will be ensuring a high liquidity and credit availability in the facilitation of the transparency in the economy also.