A financial institution is a company whose 'product' involves money, such as making loans, investments, and accepting deposits. These institutions are fundamental to the functioning of the financial system and economy.
Institutional lenders are financial intermediaries that provide loans and other financial products, primarily funding these activities through deposits or customer investments and operating under regulatory guidelines to minimize risk.
Reinsurance is the practice where insurance companies transfer portions of their risk portfolios to other parties to reduce the likelihood of paying a large obligation resulting from an individual claim. This process helps insurance companies stay solvent by mitigating the impact of significant or catastrophic losses.
