What Are the Differences Between Depository and Non-Depository Institutions? The financial services industry in the United States has undergone major changes over the years. For many years, it consisted of two major types of business organizations: depository institutions and non-depository institutions. However, today this distinction has become much less clear-cut. Now, both groups of institutions may offer many of the same financial products and financial services
How do depository institutions differ from non-depository institutions?
Depository institutions are required to __ and _ although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository institutions, in contrast, accept cash contributions from their customers, but the cash inflows are not called instead, they're called shares or premiums.
Depository institutions include:_.
1. Commercial banks, savings banks, savings and loan associations (thrifts), and credit unions
2. Mutual funds, insurance companies, brokerage firms, and financial services companies

Depository institutions are required to accept deposits and make loans although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository institutions, in contrast, accept cash contributions from their customers, but the cash inflows are not called deposits instead, they're called shares or premiums.

Depository institutions include commercial banks, savings banks, savings and loan associations (thrifts), and credit unions.

Non-depository financial institutions include mortgage banks, pension funds, insurance companies, mutual fund, securities firms etc.