Non
Content
Non-banking financial company
From Wikipedia, the free encyclopedia Jump to: navigation, search This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2012) 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.[1] However this depends on the jurisdiction, as in some jurisdictions, such as 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.
Contents
1 Services provided 2 Regulation 3 Classification 4 See also 5 References 6 External links
Services provided
NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding, retirement planning, trading in money markets, underwriting stocks and shares, TFCs(Term Finance Certificate) and other obligations. These institutions also provide wealth management such as managing portfolios of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and acquisition activities. The number of nonbanking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non-bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies. However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.
Regulation
For European NCs the Payment Services Directive (PSD) is a regulatory initiative from the European Commission to regulate payment services and payment service providers throughout the European Union (EU) and Eurofff Economic Area (EEA). The PSD describes which type of organisations can provide payment services in Europe (credit institutions (i.e. banks) and certain authorities (e.g. Central Banks, government bodies), Electronic Money Institutions (EMI), and also creates the new category of Payment Institutions). Organisations that are not credit institutions or EMI, can apply for an authorisation as Payment Institution in any EU country of their URL choice (where they are established) and then passport their payment services into other Member States across the EU.
Classification
This section requires expansion. (May 2012) Based on their Liability Structure, NBFCs have been divided into two categories. 1. Category ‘A’ companies (NBFCs accepting public deposits or NBFCs-D), and 2. Category ‘B’ companies (NBFCs not raising public deposits or NBFCs-ND). NBFCs-D are subject to requirements of Capital adequacy, Liquid assets maintenance, Exposure norms (including restrictions on exposure to investments in land, building and unquoted shares), ALM discipline and reporting requirements; In contrast, until 2006 NBFCs-ND were subject to minimal regulation. Since April 1, 2007, non-deposit taking NBFCs with assets of `1 billion and above are being classified as Systemically Important Non-Deposit taking NBFCs (NBFCs-NDSI), and prudential regulations, such as capital adequacy requirements and exposure norms along with reporting requirements, have been made applicable to them. The asset liability management (ALM) reporting and disclosure norms have also been made applicable to them at different points of time. Depending upon their nature of activities, non- banking finance companies can be classified into the following categories: 1. 2. 3. 4. 5. 6. 7. 8. Development finance institutions Leasing companies Investment companies Modaraba companies House finance companies Venture capital companies Discount & guarantee houses Corporate development companies
See also
Alternative financial services Non-bank financial institution Shadow banking system
References
1. ^ http://www.investopedia.com/terms/n/nbfcs.asp
External links
RBI (India) FAQ's for NBFC List of deposit taking NBFCs- India
Categories:
Financial services
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Home › Blogs › vikas's blog
Significance of NBFCs in India:
Wed, 11/14/2012 - 12:49 — vikas
Significance of NBFCs in India
According to the Economic Survey 2010-11, it has been reported that NBFCs as a whole account for 11.2 per cent of assets of the total financial system. With the growing importance assigned to financial inclusion, NBFCs have come to be regarded as important financial intermediaries particularly for the small-scale and retail sectors. In the multi-tier financial system of India, importance of NBFCs Registration in the Indian financial system is much discussed by various committees appointed by RBI in the past and RBI has been modifying its regulatory and supervising policies from time to time to keep pace with the changes in the system. Non banking financial Company have turned out to be engines of growth and are integral part of the Indian financial system, enhancing competition and diversification in the financial sector, spreading risks specifically at times of financial distress and have been increasingly recognized as complementary of banking system at competitive prices. The Banking sector has always been highly regulated, however simplified sanction procedures, flexibility and timeliness in meeting the credit needs and low cost operations resulted in the NBFCs getting an edge over banks in providing funding. Since the 90s crisis the market has seen explosive growth, as per a Fitch Report the compounded annual growth rate of NBFCs Guidelines was 40% in comparison to the CAGR of banks being 22% only. NBFCs have been pioneering at retail asset backed lending, lending against securities, microfinance etc and have been extending credit to retail customers in under-served areas. nbfc
vikas's blog
Twitter | nbfc | nbfcs Buzzfeed nbfc | Delicious Registration of nbfc | Friendfeed nbfc registration | Clipboard nbfc guidelines | Chime Non Banking Finance Company | Reddit Registration under NBFC | Pinterest NBFCs | Folkd nbfc | nbfcs | Citeulike nbfc |Tumblr nbfc registrations | Social-bookmarking Nbfcs Guidelines | Scoop Non Banking Finance Company Registration | About RBI Under in NBFCs | Intensedebate Nbfcs | Designfloat nbfcs Guidelines | Wikipedia nbfc | nbfcs |
From Wikipedia, the free encyclopedia Jump to: navigation, search This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2012) 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.[1] However this depends on the jurisdiction, as in some jurisdictions, such as 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.
Contents
1 Services provided 2 Regulation 3 Classification 4 See also 5 References 6 External links
Services provided
NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding, retirement planning, trading in money markets, underwriting stocks and shares, TFCs(Term Finance Certificate) and other obligations. These institutions also provide wealth management such as managing portfolios of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and acquisition activities. The number of nonbanking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non-bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies. However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.
Regulation
For European NCs the Payment Services Directive (PSD) is a regulatory initiative from the European Commission to regulate payment services and payment service providers throughout the European Union (EU) and Eurofff Economic Area (EEA). The PSD describes which type of organisations can provide payment services in Europe (credit institutions (i.e. banks) and certain authorities (e.g. Central Banks, government bodies), Electronic Money Institutions (EMI), and also creates the new category of Payment Institutions). Organisations that are not credit institutions or EMI, can apply for an authorisation as Payment Institution in any EU country of their URL choice (where they are established) and then passport their payment services into other Member States across the EU.
Classification
This section requires expansion. (May 2012) Based on their Liability Structure, NBFCs have been divided into two categories. 1. Category ‘A’ companies (NBFCs accepting public deposits or NBFCs-D), and 2. Category ‘B’ companies (NBFCs not raising public deposits or NBFCs-ND). NBFCs-D are subject to requirements of Capital adequacy, Liquid assets maintenance, Exposure norms (including restrictions on exposure to investments in land, building and unquoted shares), ALM discipline and reporting requirements; In contrast, until 2006 NBFCs-ND were subject to minimal regulation. Since April 1, 2007, non-deposit taking NBFCs with assets of `1 billion and above are being classified as Systemically Important Non-Deposit taking NBFCs (NBFCs-NDSI), and prudential regulations, such as capital adequacy requirements and exposure norms along with reporting requirements, have been made applicable to them. The asset liability management (ALM) reporting and disclosure norms have also been made applicable to them at different points of time. Depending upon their nature of activities, non- banking finance companies can be classified into the following categories: 1. 2. 3. 4. 5. 6. 7. 8. Development finance institutions Leasing companies Investment companies Modaraba companies House finance companies Venture capital companies Discount & guarantee houses Corporate development companies
See also
Alternative financial services Non-bank financial institution Shadow banking system
References
1. ^ http://www.investopedia.com/terms/n/nbfcs.asp
External links
RBI (India) FAQ's for NBFC List of deposit taking NBFCs- India
Categories:
Financial services
Navigation menu
Create account Log in Article Talk Read Edit source View history
Main page Contents Featured content Current events Random article Donate to Wikipedia
Interaction
Help About Wikipedia Community portal Recent changes Contact page
Toolbox
Print/export Languages
Deutsch தமிழ் Edit links This page was last modified on 7 July 2013 at 20:56. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. Privacy policy About Wikipedia Disclaimers Contact Wikipedia Mobile view
Nbfc | Nbcs | Nbfc registration
About Us Blog Contact
User login
Username: * Password: *
Request new password
Home › Blogs › vikas's blog
Significance of NBFCs in India:
Wed, 11/14/2012 - 12:49 — vikas
Significance of NBFCs in India
According to the Economic Survey 2010-11, it has been reported that NBFCs as a whole account for 11.2 per cent of assets of the total financial system. With the growing importance assigned to financial inclusion, NBFCs have come to be regarded as important financial intermediaries particularly for the small-scale and retail sectors. In the multi-tier financial system of India, importance of NBFCs Registration in the Indian financial system is much discussed by various committees appointed by RBI in the past and RBI has been modifying its regulatory and supervising policies from time to time to keep pace with the changes in the system. Non banking financial Company have turned out to be engines of growth and are integral part of the Indian financial system, enhancing competition and diversification in the financial sector, spreading risks specifically at times of financial distress and have been increasingly recognized as complementary of banking system at competitive prices. The Banking sector has always been highly regulated, however simplified sanction procedures, flexibility and timeliness in meeting the credit needs and low cost operations resulted in the NBFCs getting an edge over banks in providing funding. Since the 90s crisis the market has seen explosive growth, as per a Fitch Report the compounded annual growth rate of NBFCs Guidelines was 40% in comparison to the CAGR of banks being 22% only. NBFCs have been pioneering at retail asset backed lending, lending against securities, microfinance etc and have been extending credit to retail customers in under-served areas. nbfc
vikas's blog
Twitter | nbfc | nbfcs Buzzfeed nbfc | Delicious Registration of nbfc | Friendfeed nbfc registration | Clipboard nbfc guidelines | Chime Non Banking Finance Company | Reddit Registration under NBFC | Pinterest NBFCs | Folkd nbfc | nbfcs | Citeulike nbfc |Tumblr nbfc registrations | Social-bookmarking Nbfcs Guidelines | Scoop Non Banking Finance Company Registration | About RBI Under in NBFCs | Intensedebate Nbfcs | Designfloat nbfcs Guidelines | Wikipedia nbfc | nbfcs |
