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2 Top Growth Stocks That Could Skyrocket

newsfeedback@fool.com (Will Ebiefung)

2 Top Growth Stocks That Could Skyrocket

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.[1] Examples of these include insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday lending, currency exchanges, and microloan organizations.[2][3] Alan Greenspan has identified the role of NBFIs in strengthening an economy, as they provide "multiple alternatives to transform an economy's savings into capital investment which act as backup facilities should the primary form of intermediation fail."[4]

Operations of non-bank financial institutions are often still covered under a country's banking regulations.[5]

  1. ^ Carmichael, Jeffrey, and Michael Pomerleano. Development and Regulation of Non-Bank Financial Institutions. World Bank Publications, 2002, 12.
  2. ^ Non-Bank Financial Institutions:A Study of Five Sectors
  3. ^ NZ Financial Dictionary, http://www.anz.com/edna/dictionary.asp?action=content&content=non-bank_financial_institution
  4. ^ "FRB: Speech, Greenspan -- Do efficient financial markets mitigate crises? -- October 19, 1999". www.federalreserve.gov. Retrieved 13 April 2018.
  5. ^ Staff, Investopedia (31 May 2009). "Non-Banking Financial Company - NBFC". investopedia.com. Retrieved 13 April 2018.