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5/23/2015

Non Banking Financial


Institutions (BNFI)

Definition

Con--d

Non Bank Financial Institutions (FIs) are those types of


financial institutions which are regulated under Financial
Institution Act, 1993 and controlled by Bangladesh Bank.
Now, 31 FIs 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, 13 were initiated by private
domestic initiative and 15 were initiated by joint venture
initiative. Major sources of funds of FIs are Term Deposit
(at least six months tenure), Credit Facility from Banks
and other FIs, Call Money as well as Bond and
Securitization.

Definition:
Non-banking financial companies, or NBFCs, are
financial institutions that provide banking
services, but do not hold a banking license.
These institutions are not allowed to take
deposits from the public. Nonetheless, all
operations of these institutions are still covered
under banking regulations. NBFCs do offer all
sorts of banking services, such as loans and
credit facilities, retirement planning, money
markets, underwriting, and merger activities.

Difference between Banking and non


Banking Financial Institution
The major difference between banks and FIs are as
follows:
FIs cannot issue cheques, pay-orders or demand
drafts.
FIs cannot receive demand deposits,

FIs cannot be involved in foreign exchange


financing,
FIs can conduct their business operations with
diversified financing modes like syndicated
financing, bridge financing, lease financing,
securitization instruments, private placement of
equity etc.

5/23/2015

Difference between Banking and non


Banking Financial Institution
Others include: 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 NBFC (Non Banking Financial Company) is an
organization that does not accept customer cash deposits
but provides all financial services except bank accounts.

Difference between Banking and non


Banking Financial Institution Con--d
The basic difference may include: 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

Product & Services of NBFI

Product & Services of NBFI Co-d

Financing and Investment Product

Deposit Product

Lease finance, Term finance, Project finance,


corporate finance, Lease finance, Bridge finance,
Car finance, personal loan, student loan,
Professional loan, venture capital

Capital Market Services

IPO management, Right issue management,


Underwriting, portfolio management, Equity
investment

Fixed term deposit, Monthly income deposit, Period


income deposit, Double money deposit, Monthly
saving scheme etc

5/23/2015

List of Non-banking financial


institutions in Bangladesh
Non-banking financial institutions
1. Uttara Finance and Investments Limited
2. United Leasing Company Limited (ULCL)
3. Union Capital Limited
4. The UAE-Bangladesh Investment Co. Ltd
5. Saudi-Bangladesh Industrial & Agricultural Investment
Company Limited (SABINCO)
6. Reliance Finance Limited
7. Prime Finance & Investment Ltd
8. Premier Leasing & Finance Limited
9. Phoenix Finance and Investments Limited
10. People's Leasing and Financial Services Ltd
11. National Housing Finance and Investments Limited
12. National Finance Ltd

List of Non-banking financial


institutions in Bangladesh
13. MIDAS Financing Ltd. (MFL)
14. LankaBangla Finance Ltd.
15. Islamic Finance and Investment Limited
16. International Leasing and Financial Services Limited
17. Infrastructure Development Company Limited
(IDCOL)
18. Industrial Promotion and Development Company of
Bangladesh Limited(IPDC)
19. Industrial and Infrastructure Development Finance
Company (IIDFC) Limited
20. IDLC Finance Limited
21. Hajj Finance Company Limited
22. GSP Finance Company (Bangladesh) Limited
(GSPB)

List of Non-banking financial


institutions in Bangladesh

Regulatory Framework of NBFIs


Financial Statements

23. First Lease Finance & Investment Ltd.


24. FAS Finance & Investment Limited
25. Fareast Finance & Investment Limited
26. Delta Brac Housing Finance Corporation Ltd.
(DBH)
27. Bay Leasing & Investment Limited
28. Bangladesh Industrial Finance Company Limited
(BIFC)
29. Bangladesh Finance & Investment Co. Ltd.
30. Agrani SME Finance Co. Ltd.
31. CAPM Venture Capital and Finance Limited
Among these 23 are listed with the DSE.

Annual report

Reference
See page 156
Point: 2.01 to 2.05 of this
annual report

5/23/2015

IDLC Annual report