Financial Institution

Financial institutions is an umbrella term applied to banks and non-bank financial institutions (NBFIs). NBFIs, sometimes referred to as shadow banks, do not have banking licences so cannot accept deposits from the public but they do offer a wide range of financial services. NBFIs include life insurance and general insurance companies, asset and wealth managers, trust companies, pension funds, private equity and venture capital firms, financial advisors, hedge funds, payments companies, pawnbrokers, supply-chain finance specialists (including factoring and invoice-discounting firms), leasing companies, hire-purchase companies and specialised lenders (including microfinance organisations, pay-day lenders and peer-to-peer lenders), brokers and market-makers.