Difference between bank and nonbanking financial institution

Author Topic: Difference between bank and nonbanking financial institution  (Read 1458 times)

Offline hassan

  • Faculty
  • Hero Member
  • *
  • Posts: 501
    • View Profile
    • Google site
Difference between bank and nonbanking financial institution
« on: April 22, 2012, 08:00:25 PM »
A Bank is an organization that accepts customer cash deposits and then provides financial services like bank accounts, loans, share trading account, mutual funds, etc.

A NBFC (Non Banking Financial Company) is an organization that does not accept customer cash deposits but provides all financial services except bank accounts.

a) A bank interacts directly with customers while an NBFI interacts with banks and governments

(b) A bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly
concerned with the term loan needs of large enterprises

(c) A bank deals with both internal and international customers while an NBFI is mainly concerned with the
finances of foreign companies

(d) A bank's man interest is to help in business transactions and savings/ investment activities while an
NBFI's main interest is in the stabilization of the currency
Md. Arif Hassan
Assistant Professor
Department of Business Administration
Faculty of Business and Economics
Daffodil International University

Offline tree

  • Full Member
  • ***
  • Posts: 154
    • View Profile
Re: Difference between bank and nonbanking financial institution
« Reply #1 on: June 27, 2012, 03:55:14 PM »
Thank you sir for your potential post