27. Mutual savings bank

A mutual savings bank is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund. From this fund claims, loans, etc., are paid. Profits after deductions are shared between the members.

In the early stages of development , these institutions were engaged in the accumulation of savings of the poor. Gradually the scope of operations of savings banks expanded, and now they represent a universal commercial banks. Universalization of banks has led to increased competition from savings banks and other credit institutions for funds from the public as a source of capital. Currently, savings banks carry a large range of banking , including deposit, loan , investment , foreign exchange and other transactions . Banks work with both private investors and with companies , other credit institutions and the state.

In some industrialized countries, savings banks occupy a leading position in the credit system , and in developing countries they are mainly aimed at encouraging savings, housing development and agricultural production, funding for social programs. Speaking about Ukraine JSC Oschadbank is an example of mutual saving bank in this country.

28. Life insurance companies

According to the Ministry of Finance in the insurance market of Ukraine for life insurance in the first three leaders are such companies as:

Private JSC “Aliko Ukraine” (MetLife Alico), is part of MetLife, Inc. The company offers a wide range of services, including life insurance, accident insurance, health insurance, borrowers, as well as group insurance.

        MetLife, Inc., Through its subsidiaries and affiliates, serves over 70 million customers in North and South America, Asia-Pacific and Europe.

Insurance company “TAS” has become the first domestic life insurance company. Today the company is one of the leading and most reputable insurance companies in Ukraine, which offers its customers a wide range of advanced programs for individual and corporate life insurance, and life insurance programs borrower banks, along with quality professional service.

“ASKA-Life” Positioned in the national market as one of the leading life insurance companies. Together with the companies "ASKA" and "ASKO-Donbass North" is insurance group "ASKA"which represents the insurance business of SCM.

"ASKA-Life" takes an active role in the insurance market of Ukraine, taking part in the development of relevant guidance documents, laws, and regulations.

29. - 30. Pension funds are specialized financial intermediaries that on a contractual basis accumulate funds of legal entities and individuals in the trust funds, of which make pension payments to citizens of a certain age.

Public funds are usually created at the initiative of the central and local governments. Contributions to it are made through payroll tax all or certain categories of workers or deductions from the respective budgets. Therefore, the allocation of these funds is carried out mainly in government securities.

Private pension funds and government retirement funds receive periodic payments of contributions from employers and/or employees that participate in the program. Employee contributions are either automatically deducted from pay or made voluntarily. The pension and retirement funds' liability is to provide retirement income, generally in the form of annuities, to individuals covered by these pension plans. As the liabilities of private pension and government retirement funds are fairly certain with respect to timing and are of a long-term nature, they invest resources in long-term financial instruments, such as corporate stocks and bonds.

A pension is a claim on the earnings of future workers. Some countries choose to pay these claims out of future taxes; others set up special funds to invest in financial assets. But these assets (equities, bonds and property) will be able to pay pensions only because future workers generate the income to make them valuable. So it is not necessarily disastrous for France and Greece that they have barely any pension-fund assets, whereas the Netherlands and Switzerland have accumulated funds worth more than their GDP. Still, pension funds may make matters plainer: Dutch and Swiss workers have clear claims to the assets, but French and Greek workers have to rely on the promises of politicians.

Bulgarian pension system consists of three levels:

First level: compulsory pension insurance system (PAYG pension system) is based on the principle of solidarity and is subordinate to the National Insurance Institute. There is a close link between pensions and personal contributions of insured persons in the system, there is a differentiation between the contributions of the insured, the insurer and the state.

Second level: Supplementary Pension Insurance is based on the principle of equality ( funded pension system ) and implemented Licensed private pension insurance. This system covers all insured persons born after 31 December 1959. Additional pension insurance through pension plans to defined contribution accumulated and capitalized for individual retirement accounts. This system does not replace , but complements the compulsory social security on the principle of solidarity and allows you to get more than one pension, and thus increase the replacement rate of labor income . Pension insurance sold through participation in universal and occupational pension funds, they are managed licensed pension insurance company .

Third level: additional voluntary pension insurance based on the principle of equality (accumulation) and carried Licensed private pension insurance. In fact, a form of long-term savings for a higher pension.