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Quasi-Public Corporation


A quasi-public corporation, also known as a quasi-governmental organization, is an entity that is owned or controlled by the government, but also operates with some degree of independence. These corporations are often created to undertake commercial activities on behalf of the government. Examples include public utilities and central banks.


The phonetic pronunciation of “Quasi-Public Corporation” is: Kwoh-zee-Puhb-lik Korp-uh-rey-shuhn.

Key Takeaways

  1. Quasi-public corporations, also known as public corporations, are businesses that operate in the private sector but are established, owned, and operated by the government. They combine characteristics of both private corporations and government agencies.
  2. These corporations often exist to fulfil specific purposes such as providing essential public services that may not be reliably or efficiently provided by private companies. Examples can include transportation, utilities, or healthcare.
  3. Lastly, Quasi-public corporations often enjoy a certain degree of autonomy which enables them to operate under market conditions. This can act to maintain efficiency, competitiveness, and profitability, but they are overseen and regulated by the government to protect the public interest.


Quasi-public corporations play a significant role in the financial and economic ecosystems as they straddle the line between public and private entities. They are typically created by the government to undertake commercial activities and are crucial in sectors like utilities and transportation where consistent service provision is essential. By operating in the private sector, these entities can benefit from increased operational efficiencies and monetary profit incentives. However, as they also fulfill public objectives, they are subject to higher levels of government control and scrutiny, leading to added accountability. Therefore, the unique structure and role of quasi-public corporations underscore their importance in the balanced development of national economies.


Quasi-public corporations are unique entities designed to fulfill specific roles that combine aspects of both private corporations and governmental bodies. The purpose of quasi-public corporations is to operate in areas of public concern or places where government agencies may not be equipped or efficient to manage operations. These entities, also known as government-sponsored enterprises, allow for an infusion of private-sector innovation, efficiency, and competition into public services, while still operating under governmental oversight for the benefit of the public interest.Quasi-public corporations are often used in fields where both large-scale infrastructure and public accountability are crucial. For instance, they are commonly found in utilities, transportation, housing, healthcare, and financial services sectors, among others. Examples include the U.S. Postal Service and mortgage agencies like Freddie Mac and Fannie Mae. In these complex, high-stakes areas, quasi-public corporations are used to leverage the strengths of the private sector while ensuring that the essential service’s provision aligns with public policy goals. These corporations often receive some level of public funding but also generate revenue through activities typical for private enterprises.


1. United States Postal Service: This is often cited as an example of a quasi-public corporation. While it is operated by the federal government of the United States, it operates much like a private business, charging for its services and aiming to cover its costs.2. Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation): These government-sponsored entities were originally created to increase home ownership by promoting mortgage lending. They buy home loans from banks and other lenders, convert them into mortgage-backed securities and then offer them to investors.3. The Federal Reserve System: While it operates with a considerable degree of independence from the government, the central bank system of the United States is an example of a quasi-public corporation. Its responsibilities include influencing monetary and credit conditions, managing the country’s money supply, and maintaining the stability of financial systems.

Frequently Asked Questions(FAQ)

What is a Quasi-Public Corporation?

A quasi-public corporation is a type of business enterprise that is backed by a government but managed privately. The government initiates their creation, but a private entity runs their everyday operations.

How is a Quasi-Public Corporation formed?

A quasi-public corporation is typically formed through a government legislation. The government of a country, state or city, initiates their setup, but the management and daily operations are handed over to private entities.

What are some examples of Quasi-Public Corporations?

Examples of quasi-public corporations include the United States Postal Service, British Broadcasting Corporation (BBC), and the Federal National Mortgage Association (Fannie Mae).

What is the purpose of Quasi-Public Corporations?

Quasi-public corporations are usually established to provide public services that are not typically provided by private businesses, due to their lack of profitability or high risk. Areas such as infrastructure, public transportation, and housing may be served by these corporations.

What is the difference between a public corporation and a quasi-public corporation?

A public corporation is completely controlled by the government, including its management and operations. Meanwhile, a quasi-public corporation, although backed by the government, is managed privately.

Is a Quasi-Public Corporation Profit-oriented?

Not necessarily. The primary aim of quasi-public corporations is to provide essential services to the public. However, they also aim to operate efficiently and can generate profits.

Who regulates Quasi-Public Corporations?

While quasi-public corporations are privately managed, they are still subject to government oversight and regulation. The level of government regulation can differ based on the specific corporation and its industry.

What are the advantages of Quasi-Public Corporations?

These corporations can provide essential public services that private firms may not deliver due to lack of profitability. Furthermore, they can allow for a degree of competition in certain sectors and contribute to economic growth by making significant investments in infrastructure and other projects.

Are Quasi-Public Corporations subject to public scrutiny like government bodies?

Yes, since they are established through government legislation, they are accountable to the public similar to fully public agencies. They are expected to operate transparently and responsibly.

Related Finance Terms

  • Government-Sponsored Enterprises
  • Public-Private Partnership
  • Municipal Corporation
  • Regulatory Agencies
  • Crown Corporations

Sources for More Information

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