Non-Participating Financial Institutions (NPFIs)

Non-Participating Financial Institutions (NPFIs) are financial entities that do not engage in certain common banking activities, such as participating in the central bank’s monetary policy operations or purchasing government securities directly. Unlike regular banks or financial institutions that often participate in these activities to support liquidity and economic stability, NPFIs operate independently without these involvements. They may focus on specific financial services or markets, but their non-participation means they don’t contribute to or benefit directly from the central bank’s monetary policy mechanisms.