Non-Depository Financial Institution

Non-Depository Financial Institution - Non-Depository Financial Institution is the Government or the private organizations, such as building society, insurance company, investment trust, or mutual fund, or unit the trust serving as an intermediary between the savers and borrowers, but not accepting time deposits. Such institutions fund their lending activities either y selling securities, bonds, notes, stocks and shares, or insurance policies to the public. Their liabilities, depending on the liquidity of the liability, may fall under one or more money supply definitions, or classified as near money. It is the financial institution that funds their investment activities from the sale of securities or insurance.