Distinction between Banking and Non-banking Financial Institutions

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Advisory Board, please assist me with the following issue at your earliest convenience. Specifically: could you explain the difference between banking and non-banking credit institutions? Advisory Board, please address the above issue for me as soon as possible. Sincerely thank the Advisory Board very much!Minh Ngoc - Dong Nai

DISTINGUISHING BANKING AND NON-BANKING CREDIT INSTITUTIONS

Criteria	Bank	Non-bank
:---:	:---:	:---:
Activities	1. Accepting deposits: receiving funds from organizations and individuals in the form of demand deposits, term deposits, savings deposits, issuing certificates of deposit, promissory notes, commercial paper, and other forms of deposits under the principle of fully repaying the principal and interest to depositors as agreed. 2. Granting credit: lending, discounting, financial leasing, factoring, bank guarantees, and other credit granting operations. 3. Providing payment services through account: providing payment instruments; performing check payment services, payment orders, transfer orders, collection authorization, collection mandates, bank cards, letters of credit, and other payment services for customers through customer accounts.	1. Accepting deposits: receiving funds from organizations in the form of demand deposits, term deposits, savings deposits, issuing certificates of deposit, promissory notes, commercial paper, and other forms of deposits under the principle of fully repaying the principal and interest to depositors as agreed. 2. Granting credit: lending, discounting, financial leasing, factoring, bank guarantees, and other credit granting operations.
Type	1. Commercial banks; 2. Policy banks; 3. Cooperative banks	1. Finance companies; 2. Financial leasing companies; 3. Other non-bank credit institutions.

Legal basis: Law on Credit Institutions 2010

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