Nonbank financial companies

Nonbank Financial Companies (NBFCs) are financial institutions that provide various services similar to traditional banks, such as loans, investment management, and insurance, but do not hold a banking license. They primarily focus on specific financial sectors, like consumer finance or leasing, and cater to clients who may be underserved by banks. NBFCs play a critical role in the financial system by facilitating access to credit and supporting economic growth, but they often face different regulations and risks compared to traditional banks. Examples include finance companies, insurance firms, and investment funds.