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Highlight functions of non-banking financial institution

      

Highlight functions of non-banking financial institution

  

Answers


John
Offers advisory services to their clients in matters such as business or opportunities available

Encourage clients to carry out business activities

They encourage investment by advancing loans

To individual member

They supervise and monitor the investment activities of the people

Also:
a) They stimulate competition with commercial banks over deposits and credit markets which lead to enhanced efficiency of services to savers and borrowers.
b) Enhance the development of the financial markets through the introduction of a great variety of financial services.
c) Offer credit facilities to risky borrowers at higher rate of interest whom commercial banks have denied credit
d) Offer financial services which are beyond the scope of commercial banks such as purchase finance
e) Through the development of the non-bank financial institutions the government can use them as an additional vehicle for the more effective execution of monetary policy.
johnmulu answered the question on October 21, 2017 at 09:34


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