Question
What is a non-financial institution?
Answer
A non-financial corporation is one that engages in the production of market goods and (non-financial) services. Examples include: Apple, Toyota, Nestle and so on. Financial institutions, on the other hand, include banks such as HSBC.
A non-bank financial company, on the other hand, is a financial institution that provides related banking services but does not meet the legal definition of a bank. In other words, it is an institution that does not hold a banking license and is not regulated by a banking regulatory agency. Pawnshops and currency exchanges, for example, are some non-bank financial institutions.
