Non-bank financial institutions refer to other financial institutions except traditional banks. Unlike banks, non-bank financial institutions have no power to issue money, but they play an important role in the financial market. On a global scale, the development of non-bank financial institutions has become more and more important and an indispensable part of the financial market. So, what is non-bank finance? This paper will analyze this problem from many angles.

First of all, a major feature of non-bank finance is venture capital. Non-bank financial institutions mainly make profits through investment. Different from the deposit and loan business of banks, non-bank financial institutions involve a wider range of business, including private equity, venture capital, debt investment and so on. In these areas, non-bank financial institutions invest in high-risk and high-yield projects to obtain greater returns. However, venture capital also means potential risks. Therefore, non-bank financial institutions need to have strong risk management capabilities to avoid possible losses.

Secondly, another important feature of non-bank financial institutions is the organizer of the capital market. Unlike banks that can only provide limited financial services to customers, non-bank financial institutions can issue financial instruments such as stocks and bonds, thus integrating a large number of projects into the capital market. By financing enterprises, non-bank financial institutions have promoted economic development. In addition, non-bank financial institutions can also provide related services such as mergers and acquisitions and listing for enterprises. This has further promoted economic prosperity.

In addition, non-bank financial institutions have also played a role in diversifying risks. Compared with a single bank, the number of non-bank financial institutions is more and their business scope is wider, which can better spread risks. When a project or enterprise has problems, non-bank financial institutions can reduce risks through diversified investment portfolios, thus maintaining the stability of the entire financial system. In addition, non-bank financial institutions can help people cope with various risks and improve their quality of life by providing insurance and pension services.

In a word, non-bank finance refers to other financial institutions except banks. Non-bank financial institutions profit from venture capital and play an important role in the capital market. In addition, non-bank financial institutions also play the role of diversifying risks and help maintain the stability of the financial system. With the development of global financial market, the status and role of non-bank financial institutions will become more and more important.