Banking license
Encyclopedia
Under most jurisdictions, a banking license is a prerequisite for a financial institution
that wants to provide banking services, such as taking deposit
s from the general public.
A non-banking financial company
is an institution that provides financial services without meeting the legal definition of a bank, such as holding a banking license.
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
that wants to provide banking services, such as taking deposit
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
s from the general public.
A non-banking financial company
Non-banking financial company
Non-bank financial companies 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...
is an institution that provides financial services without meeting the legal definition of a bank, such as holding a banking license.