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Outline five differences between commercial banks and non-financial institutions

Answer Text:
-Commercial banks give short term loan and overdrafts while NFBI give long term and medium loans
-Commercial banks give loans for various purposes in the economy while NBFI give loans for specific purpose or sector
-Commercial banks creates credit while NBFI do not
-Commercial banks get involved in foreign exchange while NBFI donot get involved
-Commercial banks act as custodians of valuables while NBFI do not as act as custodians
-Commercial banks provide letters of credit to their clients while NBFI do not
provide letters of credit to their clients.