Non-banking financial company

The financial company is a term from the German Banking Act ( KWG) and serves to demarcate different companies in the financial sector. Thus, financial companies are companies that are not banks and no capital management companies or investment companies managed externally and whose main activity is

Until 31 December 2008, also factoring and leasing business, this included. However, these are in accordance with § 1 paragraph 1a KWG since 1 January 2009 classified as financial services.

The Federal Ministry of Finance may, after consultation with the Deutsche Bundesbank other companies designate by ordinance as financial companies.

It also includes financial holding companies to the group of financial companies whose subsidiaries are exclusively or mainly institutions or finance companies and the at least one deposit-taking institution, an e- money institution or a securities trading company to a subsidiary undertakings.

Evidence

• Financial Services