Banks and non-Bank institutions: what is the difference and how legally become the owner

The Bank to buy Kiev

We are all at least a little bit aware of what is financial institutions and what are their functions. However, for those who are professionally occupied in the financial area there is a clear distinction between banking and non-banking fin. institutions. The first system includes the national Bank of Ukraine and commercial banks. In turn, non-bank institutions, of course, banks are not, but full-scale exercise of investment activities, as well as credit and other transactions in the banking market. These include:

  • Insurance, investment, trust, brokerage, financial companies;
  • Various funds, including the pension;
  • Credit associations and credit unions.

Purchase a non-Bank institution

According to the functional responsibilities of non-Bank institutions are very similar with the banks because:

  • operate in a similar sector of the money market;
  • also issue debt obligations which, although less liquid, but can be implemented on the market;
  • buy debt obligations, thereby forming their own claims on other economic agents. The difference is that these requirements are less liquid and more risky than Bank assets;
  • their activities regarding the establishment of obligations is based on the same principles as that of the banks.

In particular, the difference between banks and non-Bank financial institutions formed solely to their different role in the financial sector.

How to buy non-banking institution or a Bank

As to the question of share on the market, here, as in any other sphere of Economics, there are 2 ways: to create a company on their own, or to buy an existing business. In principle, the procedure is similar, because for the transmission rights necessary to enter into a standard purchase and sale contract. And this should be done with the assistance of lawyers, and even better – to give them full legal support of the procedure.

To buy a Bank. Kiev

So, referring to specialists of corporate law, You:

  • do not buy a “pig in a poke”. You can feel free to request documentation concerning previous activities of the company, company registration, current owners, etc. Therefore, after that You will be confident in the merchandise that you buy, which is extremely important to conduct a long and successful activity;
  • be sure that all rights will be transferred in full and legally.

Therefore, if You decide to buy a non-banking institution, or purchase a Bank – do it with the support of lawyers, because only lawyers can guarantee the legality of the actions and easiness further business.