answersLogoWhite

0

The large chunks of funds in financial institutions come from the public. This means the promoters share is very less compared to that of public. Hence, there is conflict of interest between two parties giving rise to agency problem.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What are DFIs?

Department of Financial Institutions. State run regulatory agency.


What is the full form of KRA IN KYC?

KRA in KYC stands for KYC Registration Agency. A KYC Registration Agency (KRA) is a company that is authorized by a financial regulator to collect and store customer information for financial institutions. KRAs are used to help financial institutions comply with Know Your Customer (KYC) regulations.


What are the problems of agency theory to the financial manager?

The problem of agency theory are pricniple and agent.


In the principles that form foundations of financial management the agency problem is?

Read your textbook


Where can one compare the best credit cards?

The websites of individual financial institutions often have a tool for comparing features of their own credit card offerings. The Financial Consumer Agency Of Canada has an online interactive tool to help you compare features across financial institutions.


Functions of financial institutions to institutions?

provide financial services


What agency regulates state chartered credit unions in California?

If the bank in California has chosen to go with a state charter (instead of a federal charter), the agency regulating that bank is named "The California Department of Financial Institutions."


What agency is responsible for consumer protection in the financial sector?

The Consumer Financial Protection Bureau (CFPB) is the primary agency responsible for consumer protection in the financial sector in the United States. Established in 2010, the CFPB oversees financial products and services, ensuring that consumers are treated fairly and are informed about their rights. It enforces regulations, provides consumer education, and handles complaints related to financial institutions and services.


Problems faced by non-banking financial institutions?

the problem faced by non banking financial institution is recoverying the funds from the debtors due irresponse from the govt side


How do financial institutions and markets interact with the areas of investments and financial managements?

how do these institutions intetact


An examples of financial institutions?

Banks are examples of Financial Institutions.


When was Office of the Superintendent of Financial Institutions created?

Office of the Superintendent of Financial Institutions was created in 1987.

Trending Questions
Should the billing address match the credit card for this transaction? How does the dare decision making model help you? Can getting a new credit score affect your credit score? If your credit score went from 740 to 630 after two 30 day late credit card payments how long will it take for your score to recover? Why can't everyone be rich? Both they have the authority to spend funds on anything not expressly prohibited in order to complete the mission and they must have affirmative authority to use funds for a particular? How do you know if there is a judgment for your credit card debt? What bank has sort code 40-33-33? Can your company force you to use a corporate credit card? What is the ticker symbol for the sunglasses hut? Home loan online refinance rates are offered as low as what percentage on the Lending Tree homepage? Can you provide an example of a corporate bond quote? How do you check if I am still blacklisted? In the epay function how can you make a payment in june from your checking account but use your savings account for my july payment? Examples of capital expenditure and revenue expenditure? What if your unpaid balance is 2750.00 your card has a minimum of 10.00 of the outstanding balance what must you pay? How many insurance companies sell annuities? What is the most effective tqqq options strategy for maximizing returns in a volatile market? Who was the president of the International Bank of Settlement in 1923? Mortgages for single-family and multifamily dwellings are insured by which department?