noun
- financial institutions that provide banking services but are not licensed as banks
Usage: finance; plural form
Examples
- Credit unions and insurance companies are examples of nonbanks.
- Nonbanks have grown rapidly in the financial services sector.
- Regulators are paying closer attention to nonbanks after the financial crisis.
- Many nonbanks offer loans and investment services to consumers.
- The company partners with several nonbanks to expand its lending capacity.
- Nonbanks often face different regulatory requirements than traditional banks.