Question

discuss the source of funds and primary assets for banks , insurance companies and pension funds in palestine

Answer 1

Answer . The following are Sources of Funds for Banks:

The main source of funds of commercial banks is deposits. The other sources of funds are borrowings from other banks, capital, reserves and surplus. The deposits of commercial banks are from savings deposits, current account deposits and term deposits.
Primary Asstes : Loan assets and investment assets are the primary assets of a commercial bank.

Insurance Companies

Insurance companies are considered as financial intermediaries for several reasons. The first reason is that they receive funds from their clients for further investment. Many people use insurance companies as institutions in which they invest most of their savings. Another reason why these institutions can be found as financial intermediaries is that these institutions place invested assets of its clients in a series of investments that will make them some money. So, they take resources from one sector and invest them in another sector.

Insurance companies deal with the risk-taking on behalf of their clients in exchange for compensation in the form of premiums. Insurance companies generate profits by charging insurance premiums that are designed to be sufficient to pay expected claims for damages and to obtain certain profits

Assets of Insurance Companies

Insurance organizations as legal entities have their property. Assets of insurance organizations constitute the right of ownership on immovable and movable assets, cash, securities and other property rights.
Insurance companies acquire funds from multiple sources. Initial funds consist of assets which founders provide while founding (initial capital), then the money come from collected premiums received for the risks in insurance as well as assets remained as profit at the end of the fiscal year. The joint stock company sorts the means it deals with into certain funds. According to the Law on Insurance, the funds of insurance companies are
1. Means of technical reserves
2. Means of gurantee reserves
3. Other insurance means

Pension Funds

A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme that provides retirement income. Pension funds are pooled monetary contributions from pension plans set up by employers, unions, or other organizations to provide for their employees' or members' retirement benefits. Pension funds are the largest investment blocks in most countries and dominate the stock markets where they invest. When managed by professional fund managers, they constitute the institutional investor sector along with insurance companies and investment trusts. Typically, pension funds are exempt from capital gains tax and the earnings on their investment portfolios are either tax-deferred or tax exempt.