Dvara Research BlogDvara Research Blog
Dvara Research Blog
Doorway to Financial Access
  • Home
  • About Us
  • Subscribe
    • Email Subscription
    • Feed
  • Contact Us
Menu back  

Functioning on an Uneven Keel: Capital Regulation of Credit Intermediaries in India

April 1, 20191 CommentResearch Viewed : 710

As part of the Notes on the Indian Financial System series, Nishanth K, Dvara Research, has authored our latest research paper titled “Functioning on an Uneven Keel: Capital Regulation of Credit Intermediaries in India“.

Abstract:

India is a bank-dominated financial system with most of the financial assets belonging to the banking sector. However, it is yet to match the size and outreach of banking sectors as prevailing in various other emerging economies. Even after 20 years of liberalisation, close to 70% of the banking sector assets belong to Public Sector Banks (PSBs). The interesting development, however, has been the rise in the popularity of non-deposit taking NBFCs (NBFC-ND) as sources of credit. While the size of the NBFC sector is still relatively small compared to that of banks, these entities have gained market share and are the predominant source of credit in certain niche segments. In this paper, we discuss the role of non-deposit taking NBFCs in the Indian system as credit intermediaries and the regulatory regime that applies to these entities. We postulate that the regulation of credit intermediaries in the financial system should satisfy the principle of institutional neutrality. With regulatory capital for poorly performing banks set lower than relatively well-performing NBFCs, the current regulatory regime seems imbalanced in its application of prudential requirements. The paper concludes with a set of recommendations to re-design the regulatory framework of non-deposit taking NBFCs in India.

Click here to read the paper.

Share Via :Tweet about this on Twitter
Twitter
Share on Facebook
Facebook
Share on LinkedIn
Linkedin
Email this to someone
email
Capital Regulationcredit intermediationNBFCNotes on the Indian Financial System
1 Comment
  1. Reply
    April 4, 2019 at 2:01 pm
    Prasanna Srinivasan

    Thanks for this report. I found it very enlightening and highlighting many aspects that relate to day-to-day life. Given its a serious subject and hence likely heavy reading, a short length really helped! (Not that I’m expect such notes to be a laugh-a-minute read). Compliments to the team. I am sure that will assist in amending the rules suitably, through RBI/govt, and hope you follow up on that also – given your good institutional credentials on such matters.

Leave Comment

Cancel reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

clear formSubmit

Related posts
Improving Outcomes for the Financial System through Credit Rating Agencies – Part 1
December 12, 2019
Insights from the Roundtable on Implementing India’s Personal Data Protection Bill
December 2, 2019
The State of Micro-pensions in India
November 27, 2019
Have Small Finance Banks been able to meet financial inclusion goals?
November 18, 2019
Our Response to the Ministry of Labour on the Draft Code on Social Security, 2019
November 1, 2019
An Analysis of ‘Harm’ defined under the draft Personal Data Protection Bill, 2018
October 29, 2019
Search
Recent Comments
  • Narasimhan Srinivasan on Have Small Finance Banks been able to meet financial inclusion goals?: “A good analysis considering the limited data available. The comparison on underbanked location branches is perhaps has to be…”
  • Prasanna on Let’s stop kicking the can down the road: Highlighting important and unaddressed gaps in microcredit regulations: “The regulatory limit on lending is primarily a ceiling. Lenders have to go through their own evaluation processes to arrive…”
  • Satyamurti on Let’s stop kicking the can down the road: Highlighting important and unaddressed gaps in microcredit regulations: “You have not pointed out the failure of self regulating organization Under one roof they have members or associate…”
Subscribe and Follow Us

Popular Post

Popular Post
  • Improving Outcomes for the Financial System through Credit Rating Agencies – Part 1
    December 12, 2019
  • Insights from the Roundtable on Implementing India’s Personal Data Protection Bill
    December 2, 2019
  • The State of Micro-pensions in India
    November 27, 2019

Categories

Categories
  • Channels(88)
  • Consumer Protection(33)
  • Events(30)
  • Featured(9)
  • Field Reports(6)
  • From the field(8)
  • General(20)
  • Guest(29)
  • Household Research(75)
  • Long Term Debt Markets(9)
  • News(45)
  • Origination(30)
  • Products(42)
  • Regulation(112)
  • Research(77)
  • Risk Aggregation(26)
  • Risk transmission(63)
  • Small Cities(21)
  • Technology(25)
  • Uncategorized(105)
  • Unemployment Support(5)

Archives

Archives
  • December 2019 (2)
  • November 2019 (3)
  • October 2019 (7)
  • September 2019 (3)
  • August 2019 (2)
  • July 2019 (4)
  • June 2019 (4)
  • May 2019 (4)
  • April 2019 (7)
  • March 2019 (2)
  • February 2019 (3)
  • January 2019 (3)
  • December 2018 (5)
  • November 2018 (2)
  • October 2018 (5)
  • September 2018 (2)
  • August 2018 (2)
  • July 2018 (2)
  • June 2018 (2)
  • May 2018 (1)
  • April 2018 (1)
  • March 2018 (5)
  • February 2018 (2)
  • January 2018 (2)
  • December 2017 (5)
  • November 2017 (4)
  • October 2017 (3)
  • September 2017 (1)
  • August 2017 (3)
  • July 2017 (1)
  • June 2017 (3)
  • May 2017 (4)
  • April 2017 (3)
  • March 2017 (4)
  • February 2017 (3)
  • January 2017 (6)
  • December 2016 (5)
  • November 2016 (2)
  • October 2016 (3)
  • September 2016 (5)
  • August 2016 (4)
  • July 2016 (4)
  • June 2016 (8)
  • May 2016 (4)
  • April 2016 (5)
  • March 2016 (4)
  • February 2016 (3)
  • January 2016 (3)
  • December 2015 (3)
  • November 2015 (1)
  • October 2015 (2)
  • September 2015 (3)
  • August 2015 (5)
  • July 2015 (3)
  • June 2015 (3)
  • May 2015 (3)
  • April 2015 (2)
  • March 2015 (3)
  • February 2015 (1)
  • January 2015 (1)
  • December 2014 (5)
  • November 2014 (4)
  • October 2014 (3)
  • September 2014 (4)
  • August 2014 (4)
  • July 2014 (4)
  • June 2014 (8)
  • May 2014 (1)
  • April 2014 (4)
  • March 2014 (5)
  • February 2014 (6)
  • January 2014 (8)
  • December 2013 (7)
  • November 2013 (8)
  • October 2013 (7)
  • September 2013 (7)
  • August 2013 (5)
  • July 2013 (6)
  • June 2013 (7)
  • May 2013 (6)
  • April 2013 (8)
  • March 2013 (9)
  • February 2013 (6)
  • January 2013 (9)
  • December 2012 (8)
  • November 2012 (7)
  • October 2012 (5)
  • September 2012 (5)
  • August 2012 (5)
  • July 2012 (7)
  • June 2012 (4)
  • May 2012 (6)
  • April 2012 (4)
  • March 2012 (7)
  • February 2012 (6)
  • January 2012 (8)
  • December 2011 (8)
  • November 2011 (7)
  • October 2011 (8)
  • September 2011 (7)
  • August 2011 (3)
  • July 2011 (6)
  • June 2011 (11)
  • May 2011 (8)
  • April 2011 (9)
  • March 2011 (13)
  • February 2011 (10)
  • January 2011 (8)
  • December 2010 (10)
  • November 2010 (10)
  • October 2010 (10)
  • September 2010 (7)
  • August 2010 (13)
  • July 2010 (10)
  • June 2010 (6)
  • May 2010 (13)
  • April 2010 (7)
  • March 2010 (10)
  • February 2010 (5)
  • January 2010 (4)
  • December 2009 (3)
  • November 2009 (1)
  • October 2009 (6)
  • August 2009 (1)
  • July 2009 (2)
  • June 2009 (1)
  • May 2009 (1)
  • April 2009 (1)
  • March 2009 (1)
Share Via :Tweet about this on Twitter
Twitter
Share on Facebook
Facebook
Share on LinkedIn
Linkedin
Email this to someone
email
Site Map

www.dvara.com