Non-banking Financial Company
Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions are not allowed to take deposits from the public. Nonetheless, all operations of these institutions are still exercised under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company can do the business of banking, and there are no banking licenses issued. If an organisation in New Zealand intends to describe itself as a bank and intends to use the word bank in its title it must first receive approval and official registration and thus licence from the nation's central bank, the Reserve Bank of New Zealand.
Read more about Non-banking Financial Company: Services Provided, Regulation, Classification
Famous quotes containing the words financial and/or company:
“Creditor. One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions.”
—Ambrose Bierce (1842–1914)
“Men with secrets tend to be drawn to each other, not because they want to share what they know but because they need the company of the like-minded, the fellow afflicted.”
—Don Delillo (b. 1926)