Depository institutions are financial intermediaries that obtain funds by accepting checking and savings deposits from individuals, businesses, and other institutions, and then lending those funds to borrowers.
What Is a Depository?
The term depository refers to a facility in which something is deposited for storage or safeguarding or an institution that accepts currency deposits from customers such as a bank or a savings association. A depository can be an organization, bank, or institution that holds securities and assists in the trading of securities. A depository provides security and liquidity in the market, uses money deposited for safekeeping to lend to others, invests in other securities, and offers a funds transfer system. A depository must return the deposit in the same condition upon request.
Financial intermediary.
A financial intermediary is an organisation that raises money from investors and provides financing for individuals, companies and other organisations e.g. banks, insurance companies and investment funds. - It is an important source of financing for corporations .
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