Monetary Financial Institutions

From the Collaborative Bond and Money Market Data Portal

"Monetary financial institutions" (MFIs) are resident credit institutions as defined in European Union (EU) law, and other resident financial institutions whose business is to receive 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.

More precisely, Regulation ECB/2013/33 concerning the balance sheet of the monetary financial institutions sector (recast) defines MFIs as resident undertakings that belong to any of the following sectors:

  • Central banks, i.e. national central banks of the EU Member States and the European Central Bank;
  • Credit institutions as defined in Article 4(1)(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms;
  • Other deposit-taking corporations which are
    1. Principally engaged in financial intermediation and whose business is:
      • to receive deposits and/or close substitutes for deposits from institutional units, not only from MFIs, and 
      • to grant loans and/or make investments in securities for their own account (at least in economic terms), or
    2. Electronic money institutions, as defined in Article 2(1) and (2) of Directive 2009/110/EC, that are principally engaged in financial intermediation in the form of issuing electronic money;
  • Money market funds (MMFs), i.e. collective investment undertakings as defined in Article 2 of Regulation ECB/2013/33.

In accordance with Regulation ECB/2013/33, the ECB maintains and regularly updates a list of MFIs. (For the complete legal framework, see here.)

Within the universe of Financial Institution Groups (FIGs) Branches typically have different Monetary Financial Institution Codes (MFIs).