Publicly raise funds through the mass media, and promoters gather public funds to set up investment funds for securities investment. Under the strict supervision of the law, these funds have industry norms such as information disclosure, profit distribution and operation restrictions.
The difference between non-bank financial institutions and banks lies in the different forms of credit business, and the division of their business scope depends on the provisions of national financial laws and regulations. The role of non-bank financial institutions in the process of social capital flow is to buy primary securities from the ultimate borrower and issue indirect bonds for the ultimate lender to hold assets.
Through the intermediary activities of non-bank financial institutions, the unit investment cost can be reduced; We can reduce the investment risk by diversifying investment, adjust the term structure and minimize the possibility of liquidity crisis; Be able to predict the repayment requirements normally, even if the asset structure with relatively small liquidity can cope.
Non-bank financial institutions attract countless creditors and debtors to engage in large-scale lending activities, which can be distributed to debtors in the form of preferential loan terms, to creditors in the form of paying interest and other forms of interest, and to shareholders in the form of generous dividends to attract more capital.
The forms of non-bank financial institutions in China mainly include trust and investment companies, leasing companies and insurance companies.
Trust and investment institutions: financial institutions specializing in (or mainly handling) financial trust business. It is an organizational form of group entrustment. The emergence of trust institutions is from individual trust to group trust.
Under the condition of commodity economy, the social division of labor is more and more detailed, economic exchanges are more and more, and the relationship between personnel and business is more and more complicated. In order to effectively manage and deal with property and economic affairs beyond their power, people need special trust institutions to serve them. The important types of trust institutions are: trust and investment companies, trust banks, trust merchants, bank trust departments and so on.
Securities institution: a financial institution specialized in (or mainly engaged in) securities business. Securities institutions have grown up with the development of the securities market. There are mainly stock exchanges, securities companies, securities investment trust companies, securities investment funds, securities finance companies, credit evaluation companies and securities investment consulting companies.
Cooperative financial institutions: Cooperative finance has a long history and plays an important role in the financial system. There are mainly rural credit cooperatives, urban credit cooperatives, labor treasury, postal savings institutions, savings credit cooperatives and so on.
Insurance institutions: mainly insurance companies, State Insurance Regulatory Bureau, mutual insurance institutions, insurance cooperatives and individual insurance organizations.
Financial leasing institutions: leasing companies or leasing business departments invested and managed by commercial banks, and leasing companies affiliated with manufacturers or distributors.
Finance company: Also known as finance company, different countries have different names and different business contents. But most of them are subsidiaries of commercial banks, mainly absorbing deposits.