Financial corporations engaged in lending are non-bank financial intermediaries whose principal business is extending credit rather than taking deposits. They provide funding to households and non-financial companies, often for the purchase or use of specific assets. The category covers financial lessors, factoring companies and providers of mortgage or consumer finance. In financial and national accounts, these specialised lenders are distinguished from deposit-taking banks and from financial corporations whose main activities lie elsewhere.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.