A non-banking financial institution (NBFI) is a company that regulated by the financial institutions act, 1993 of Bangladesh bank and engaged in the business
of loans advances, acquisition of shares, bonds, debentures, securities by Govt. or local authority. A NBFI which is a company and which has its principal
business of receiving deposits under any scheme or arrangement or any other
manner, or lending in any manner is also
a non-banking financial company.
NBFIs are doing functions
like
that
of banks; however there
are
a
few
differences:
1. A NBFI can’t accept demand deposit
2. It is not a part of the payment and settlement
system and as such can’t issue cheques to its customers
3. Deposit insurance facility is not available for NBFI depositors unlike in case
of banks.
1. Equipment leasing company: It is the processing
of securing the use of equipment by way of a rental agreement for a specified period of time.
2. Hire purchase Company:
Leasing goods by making installment payment over the time basis on rent-to-own arrangement that buyer does not
obtain ownership until the full amount is paid.
3. Loan Company: Lending to the others individuals, groups or companies.
4. Investment Company: It
is a company that issues
securities
and
is primarily engaged in the business of investing in securities.
They do business in financing for venture capital, merchant banking, investment
banking, mutual association, mutual company, leasing company
and building
society would be included as NBFIs.