(2) In spite of certain similarities, the commercial banks basically differ from non-bank financial intermediaries on the following grounds: (i) Bank is a financial institution whose liabilities (i.e., deposits) are widely accepted as a means of payment in the settlement of debt. Non-bank financial intermediaries, on the other hand, are those institutions whose liabilities are not accepted as means of payment for the settlement of debt. (ii) Commercial banks have the ability to generate multiple expansion of credit. The non-bank intermediaries do not have such ability. They simply mobilize savings for investment. (iii) The credit creation activities of the commercial banks are determined by the excess reserves and the cash-reserve ratio of the banks. The activities of the non-bank intermediaries (i.e., saving mobilization, lending activities, etc.) are largely governed by the structure of interest rates. (iv) Credit creation activities of the banks involve lesser time, while the lending activities of the non-bank intermediaries involve longer time.