In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries.

Broadly speaking, there are three major types of financial institution:

   1. Deposit-taking institutions that accept and manage deposits and make loans (this category includes banks, credit unions, trust companies, and mortgage loan companies);
   2. Insurance companies and pension funds; and
   3. Brokers, underwriters and investment funds.

Most financial institutions are highly regulated by government bodies.