The difference between a bank and a Non-Banking Financial In

Economics

526

M: +2.00/-0.50

The difference between a bank and a Non-Banking Financial Institution (NBFI) is that

I.A.S. (Pre) 1994

[Fiscal Policy, Inflation Planning and Banking]

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

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

a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies

a bank’s main interest is to help in business transactions and savings/investment activities while an NBFI’s main interest is in the stabilization of the currency

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