Differences between Banking and Non-banking financial intermediaries
| Banking Financial Intermediaries
|
Non-Bank financial Intermediaries |
| 1. They create credit which is considered as money (deposit money)
2. They lend on short term basis 3. They pay lower interest rates on deposits 4. They maintain short term deposits 5. They undertake less investment risks 6. They charge high interest rates on borrowers. |
1. They do not create credit. They just lend funds got from surplus spending units.
2. They usually lend on long term basis. 3. They pay higher interest rates on deposits. 4. They maintain long term deposits. 5. They undertake greater investment risks. 6. They charge low interest rates on borrowers |
CATEGORIES Economics
TAGS Dr. Bbosa Science
