It writes and enforces rules for financial institutions, examines both bank and non-bank financial institutions, monitors and reports on markets, as well as collects and tracks consumer complaints.
This kind of policy reduces or increases the supply of short term government debt in the hands of banks and the non-bank public, lowering or raising interest rates.
Non-bank players in the cash market typically shop around, diversifying their customers' cash between the banks, chasing the best rates in their members' interests.
However, in the absence of effective financial regulations, non-bank financial institutions can actually exacerbate the fragility of the financial system.
Alternative financial services are typically provided by non-bank financial institutions, although person-to-person lending and crowd funding also play a role.
Private label securitization refers to securitizations structured by financial institutions such as investment banks, commercial banks, and non-bank mortgage lenders.
Its major business is to provided fund management and financial services to non-bank financial institutions through trust financial supermarket, financial structure of technology, cross-industry, capital and money market.
