This article presents a comparative legal and economic analysis of non-bank financial institutions (NBFIs), examining the conceptual basis for their definition and the diversity of national regulatory practices. Although financial systems traditionally distinguish between banking and non-banking institutions, there is no universally accepted definition of NBFIs due to historical, institutional, and economic differences across jurisdictions. The study analyzes leading theoretical approaches—including subject-based, activity-based, and combined definitions—developed by international bodies and scholars. Using comparative examples from Malaysia, Ukraine, India, and Bangladesh, the article highlights how NBFIs vary in their legal status, permissible activities, and their role in financial intermediation and economic development. The results demonstrate that NBFIs often emerge to meet specific financial needs unmet by traditional banks, including Islamic finance requirements, sector-specific financing, micro-lending, and venture capital. The article proposes a synthesized definition of NBFIs that reflects their functional diversity and regulatory uniqueness, providing a basis for improving national frameworks governing non-bank financial organizations.

Non-bank financial institutions, regulatory approaches, financial intermediation

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