Summary
Summary NON BANK FINANCIAL INSTITUTIONS
- Institution
- Oxford University (OX)
NON BANK FINANCIAL INSTITUTIONS
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
Content preview
LESSON IVNON BANK FINANCIAL INSTITUTIONS
A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial
institution that does not have a full banking license or is not supervised by a national or
international banking regulatory agency. NBFC facilitate bank-related financial services, such as
investment, risk pooling, contractual savings, and market brokering. Examples of these include
insurance firms, pension funds, mutual funds, investment companies, building societies etc.
The NBFI tend to concertrate their borrowing and investiment in instruments different from
those used by commercial banks:eg the mutual banks, insurance companies and building
societies are supliers of long term funds in the capital market while Investment companies
purchase and sell stocks
ROLES/FUNCTIONS OF NBFI
NBFIs supplement banks by providing the infrastructure to allocate surplus resources to
individuals and companies with deficits.
NBFIs also introduces competition in the provision of financial services. While banks
may offer a set of financial services as a packaged deal, NBFIs unbundle and tailor these
service to meet the needs of specific clients. Additionally, individual NBFIs may
specialize in one particular sector and develop an informational advantage. Through the
process of unbundling, targeting, and specializing, NBFIs enhances competition within
the financial services industry
Non-bank financial companies (NBFCs) offer most sorts of banking services, such as
loans and credit facilities, private education funding,
Retirement planning eg the pension funds.
Trading in money markets and underwriting stocks and shares eg the investment fund
These institutions also provide wealth management such as managing portfolios of stocks
and shares, discounting services e.g. discounting of instruments and advice on merger
and acquisition activities.
Non-bank institutions also frequently support investments in property and prepare
feasibility, market or industry studies for companies. However they are typically not
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ProfDavi. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.62. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now