1/12/12 Non-banking financial compan - Wikipedia, the free encclopedia

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Non-banking financial compan
From Wikipedia, the Iree encyclopedia
Non-bank financial companies (NBFCs) are Iinancial institutions that provide banking
services without meeting the legal deIinition oI a bank, i.e. one that does not hold a
banking license. These institutions are not allowed to take deposits Irom the public.
Nonetheless, all operations oI these institutions are still exercised under bank regulation.
|1|
However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand,
any company can do the business oI banking, and there are no banking licenses issued.
Contents
1 Services provided
2 Regulation
3 ClassiIication
4 See also
5 ReIerences
6 External links
Services provided
NBFCs oIIer most sorts oI banking services, such as loans and credit Iacilities, private
education Iunding, retirement planning, trading in money markets, underwriting stocks and
shares, TFCs and other obligations. These institutions also provide wealth management
such as managing portIolios oI stocks and shares, discounting services e.g. discounting oI
instruments and advice on merger and acquisition activities. The number oI non-banking
Iinancial companies has expanded greatly in the last several years as venture capital
companies, retail and industrial companies have entered the lending business. Non-bank
institutions also Irequently support investments in property and prepare Ieasibility, market
or industry studies Ior companies.
However they are typically not allowed to take deposits Irom the general public and have
to Iind other means oI Iunding their operations such as issuing debt instruments.
Regulation
For European NCs the Payment Services Directive (PSD) is a regulatory initiative Irom the
European Commission to regulate payment services and payment service providers
1/12/12 Non-banking financial compan - Wikipedia, the free encclopedia
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hogho he Eopean Union (EU) and Eopean Economic Aea (EEA). The PSD
decibe hich pe of oganiaion can poide pamen eice in Eope (cedi
iniion (i.e. bank) and ceain ahoiie (e.g. Cenal Bank, goenmen bodie),
Eleconic Mone Iniion (EMI), and alo ceae he ne caego of Pamen
Iniion). Oganiaion ha ae no cedi iniion o EMI, can appl fo an
ahoiaion a Pamen Iniion in an EU con of hei URL choice (hee he
ae eablihed) and hen papo hei pamen eice ino ohe Membe Sae aco
he EU.
Classification
Depending pon hei nae of aciiie, non- banking finance companie can be
claified ino he folloing caegoie:
1. Deelopmen finance iniion
2. Leaing companie
3. Inemen companie
4. Modaaba companie
5. Hoe finance companie
6. Vene capial companie
7. Dicon & gaanee hoe
8. Copoae deelopmen companie
See also
Alenaie financial eice
Non-bank financial iniion
Shado banking em
References
1. ^ hp://.ineopedia.com/em/n/nbfc.ap
Eternal links
Facoing in India (hp://.langage.ind.in/facoing.hm)
RBI (India) FAQ' fo NBFC (hp://.bi.og.in/cip/FAQDipla.ap?
dId=47939)
Reieed fom "hp://en.ikipedia.og//inde.php?ile=Non-
banking_financial_compan&oldid=469692160"
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Categories: Financial services
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