Krediidiasutused

Krediidiasutused, which translates to credit institutions in English, are financial establishments that provide credit to individuals and businesses. They play a crucial role in the economy by facilitating financial transactions and promoting economic growth.

In Estonia, where the term is most commonly used, krediidiasutused are governed by the Credit and Banking Act. This law sets out the rules and regulations for credit institutions to operate in the country. Credit institutions in Estonia can be established as banks, credit cooperatives, or other types of credit institutions.

Credit institutions perform a range of activities, including accepting deposits, granting loans, and facilitating payments. They also offer various financial services, such as currency exchange, money transfer, and investment products.

The main function of krediidiasutused is to provide credit to customers, either by lending money directly or by intermediating between borrowers and lenders. They must evaluate the creditworthiness of customers before granting credit, taking into account factors such as income, credit history, and debt obligations.

In order to operate, credit institutions must maintain a minimum level of capital and liquidity. They must also adhere to strict regulations and requirements, such as maintaining accurate financial records and reporting to the supervisory authority.

Overall, krediidiasutused play a vital role in the Estonian financial system, providing individuals and businesses with access to credit and other financial services. Their activities are closely monitored and regulated to ensure stability and security in the financial system.