Limited company and Monetary financial institution: Difference between pages

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Abbreviation for Limited liability company.
Monetary Financial Institutions (MFIs) are central banks and other institutions whose business is to take deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account (at least in economic terms), to grant credits and/or make investments in securities.




In a limited liability company the liability of the members is restricted to a predefined amount.
In many contexts, MFIs ''exclude'' central banks.  


In the case of a company ''limited by shares'' the members' liability is restricted to the amount, if any, unpaid on the shares they hold.  
For example, the Bank of England publishes statistics under the heading "Monetary financial institutions (excluding central bank) balance sheet".  


Almost all commercial companies are of this type.
But conversationally and informally central banks are taken as being "MFIs".




In a company ''limited by guarantee'' the liability of the members is restricted to a predefined amount which the members guarantee to contribute (on the event of any winding up of the company).
Here as elsewhere, consistency and transparency of definitions are essential for the avoidance of doubt.




== See also ==
==See also==
* [[Limited liability]]
*[[Bank of England]]
* [[Unlimited company]]
*[[Central bank]]
*[[Credit institution]]
* [[Financial]]
*[[Institution ]]
*[[Institutional ]]
 
[[Category:Long_term_funding]]

Revision as of 22:48, 11 March 2023

Monetary Financial Institutions (MFIs) are central banks and other institutions whose business is to take deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account (at least in economic terms), to grant credits and/or make investments in securities.


In many contexts, MFIs exclude central banks.

For example, the Bank of England publishes statistics under the heading "Monetary financial institutions (excluding central bank) balance sheet".

But conversationally and informally central banks are taken as being "MFIs".


Here as elsewhere, consistency and transparency of definitions are essential for the avoidance of doubt.


See also