Defining Non-Bank Financial Institutions

A non-bank financial institution (NBFI) or non-bank financial company (NBFC) is a financial

institution that does not have a full banking license or is not supervised by a national or
international banking regulatory agency. NBFI facilitate bank-related financial services, such as
investment, risk pooling, contractual savings, and market brokering. Examples of these include
insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday lending,
currency exchanges, and microloan organizations.

List of Non-Financial Institutions in Bangladesh

1. Investment Corporation of Bangladesh
2. Agrani SME Financing Company Limited
3. Bangladesh Finance and Investment Company Limited
4. Bangladesh Industrial Finance Company Limited
5. Bangladesh Infrastructure Finance Fund Limited
6. Bay Leasing and Investment Limited
7. CAPM Venture Capital and Finance Limited
8. Delta Brac Housing Finance Corporation Limited
9. Far-east Finance & Investment Limited
10. FAS Finance & Investment Limited
11. First Finance Limited
12. GSP Finance Company (Bangladesh) Limited
13. Hajj Finance Company Limited
14. IDLC Finance Limited
15. Industrial and Infrastructure Development Finance Company Limited
16. IPDC Finance Limited
17. Infrastructure Development Company Limited
18. International Leasing and Financial Services Limited
19. Islamic Finance and Investment Limited
20. LankaBangla Finance Limited
21. Meridian Finance and Investment Limited
 22. MIDAS Financing Limited
23. National Finance Limited
24. National Housing Finance and Investments Limited
25. People's Leasing and Financial Services Limited
26. Phoenix Finance and Investments Limited
27. Premier Leasing & Finance Limited
28. Prime Finance & Investment Limited
29. Reliance Finance Limited
30. Saudi-Bangladesh Industrial & Agricultural Investment Company Limited
31. SEAF Bangladesh Venture Limited
32. The UAE-Bangladesh Investment Company Limited
33. Union Capital Limited
34. United Finance Limited
35. Uttara Finance and Investments Limited

Regulatory bodies of Non-Bank Financial Institutions

Non-Bank Financial Institutions (NBFIs) are those types of financial institutions which are
regulated under Financial Institution Act, 1993 and controlled by Bangladesh Bank. Now, 35
NBFIs are operating in Bangladesh while the maiden one was established in 1981. Out of the
total, 2 is fully government owned, 1 is the subsidiary of a SOCB, 15 were initiated by
private domestic initiative and 15 were initiated by joint venture initiative. Major sources of
funds of NBFIs are Term Deposit (at least three months tenure), Credit Facility from Banks
and other FIs, Call Money as well as Bond and Securitization.
 Difference between Non-Bank Financial Institutions and Bank
Financial Institutions

The major difference between banks and NBFIs are as follows:

 A Bank is an organization that accepts customer cash deposits and then provides financial
services like bank accounts, loans, share trading account, mutual funds, etc.
 A NBFI (Non-Banking Financial Institutions) is an organization that does not accept
customer cash deposits but provides all financial services except bank accounts.
 A bank interacts directly with customers while an NBFI interacts with banks and
governments
 A bank indulges in a number of activities relating to finance with a range of customers,
while an NBFI is mainly concerned with the term loan needs of large enterprises
 A bank deals with both internal and international customers while an NBFI is mainly
concerned with the finances of foreign companies
 A bank's main interest is to help in business transactions and savings/investment
activities while an NBFI's main interest is in the stabilization of the currency