FI stands for financial institution, and NBFI stands for non-bank financial institution.
Financial institutions are organizations that offer financial services and products to their customers. These institutions include banks, credit unions, and insurance companies, among others. They typically provide services such as accepting deposits, making loans, and providing payment and other financial services to individuals, businesses, and governments.
Non-bank financial institutions, on the other hand, are financial institutions that do not have a banking license. These institutions include finance companies, money lenders, and investment firms, among others. They typically provide financial services and products that are similar to those offered by banks, but they do not have the ability to accept deposits or issue bank notes. NBFIs are regulated by government agencies and must adhere to certain rules and regulations in order to operate.
In general, financial institutions and non-bank financial institutions are similar in that they both offer financial products and services to their customers. However, NBFIs are not licensed to perform all of the same functions as FIs, and they are subject to different regulatory frameworks.
This page was last updated on January 3, 2023.