Definition

Relating to a business or institution that is not a bank but offers similar financial services.

Example

Many nonbank lenders provide loans to individuals and businesses.

Conversation

Have you heard about that new nonbank lender that just opened up?

Yeah, I read about it online; they offer really good rates.

It seems like a great alternative to traditional banks.

Absolutely! More options are always helpful for borrowers.

Synonyms & Antonyms

Definition

A type of business that provides financial services similar to a bank but is not officially recognized as a bank.

Example

Many people use nonbank financial institutions for loans and investment services.

Conversation

Have you heard about that new nonbank that opened nearby?

Yeah, I saw an ad for it — they offer loans without the traditional paperwork.

I think it's interesting how nonbanks are becoming more popular these days.

Root Explanation

Nonbank → It is formed from "non-" (meaning not) and "bank" (from Old Italian *banca*, meaning a bench or table used for money exchange). The word "nonbank" refers to entities that are not traditional banks, indicating a lack of banking functions.

Memory Tip

Think of 'non-' meaning 'not' and 'bank' referring to a place for money. This helps you remember that a nonbank is something that is not a traditional banking institution.

Visually Confused Words