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A financial institution usually suggests a more complicated intermediary doing more than just pooling and investing savings. Banks and insurance companies are good examples.
A bank is where you can borrow money only if you can prove you don??t need it. To some extent, this joke is more truth than fiction. While banking has a profound effect on our lives, influencing the availability of jobs, the cost of living, and our savings for the future, there is still much confusion about exactly a bank is because banking today is a quite different industry than in the past. A bank can be defined in terms of (1) the economic functions it serves, (2) the services it offers its customers, or (3) the legal basis for its existence...
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