Nonbank Bank

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Nonbank Bank

An institution that provides most banking services without belonging to the Federal Reserve System or receiving a state charter. Nonbank banks do not offer checking accounts per se, but offer credit cards, loans and savings accounts. They developed to circumvent regulations preventing banks from operating in multiple states. They became unnecessary after the passage of the Riegle-Neal Act, which deregulated banks.
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2011), 'The non-bank bank nexus and the shadow banking system', IMF Working Paper WP/11/289.
The Japanese banking crisis of the early 1990s was partly centred on the so-called non-bank banks, subsidiaries of major banks that avoided regulation.
Insurance companies exploited this definition by establishing a non-bank bank that either accepted saving deposits but not demand deposits, or one that made consumer loans not commercial loans.
The remaining assurbanks, grandfathered by various exemption provisions, owned either non-bank banks or trust companies.
Stacked up against Mexico's banking system, which in total has about 15 million clients, that's a pretty big non-bank bank for one store chain.
Congress closed the unitary thrift holding company loophole in 1999 and closed the non-bank bank loophole in 1987.
The SOFOLES were created, as a result of NAFTA, to allow financial intermediaries (such as non-bank bank institutions) to begin operating in Mexico and spur greater competition and specialization in the financial sector.
Mortgage-Related Failures Year Non-bank Banks Credit Total Lenders Unions 2008 77 25 14 116 2007 150 3 7 160 2006 18 0 9 27 total 245 28 30 303 A complete report of all failed companies is available at: http://www.
Mergers and acquisitions will likely have reduced the number of banks and industry specialists and non-bank banks will play a more prominent role.
These non-bank banks borrowed funds from government development banks as well as from private commercial banks; in turn they gave loans to consumers to purchase homes and autos but were initially prohibited from accepting deposits or investing in securities or derivatives.
But they will face swarms of nimble competitors including community banks, industry specialists and non-bank banks that specialize in providing specific services.