A depository institution is a non-banking financial institution (NBFI), also known as a nondepository financial institution (NDFI). It is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers. Under federal law, however, a "depository institution" is limited to banks and savings associations - credit unions are not included.

An example of a non-depository institution might be a mortgage bank, which, while licensed to lend, it cannot accept deposits.

See also

• Authorised deposit-taking institution

• Shadow banking system

• Non-bank financial institution

References

• Ruben D Cohen (2004) “The Optimal Capital Structure of Depository Institutions”, Wilmott Magazine, March issue.