IMF warns of ongoing financial risks following banking turmoil
1 year, 8 months ago

IMF warns of ongoing financial risks following banking turmoil

Live Mint  

The recent banking turmoil in the United States and Europe could spread to crucial non-bank institutions like pension funds, further complicating central banks' fight against high inflation, the International Monetary Fund said Tuesday. Banking risks "could intensify in coming months amid the continued tightening of monetary policy globally," and spread to the interconnected non-bank sector, which now holds almost half of all global financial assets, IMF economists wrote in a blog post. Non-bank financial intermediaries like pension and investment funds have grown dramatically since the 2008 global financial crisis, when regulators moved to toughen up the rules on banks. The sheer size of the NBFI sector means "the smooth functioning of the nonbank sector is vital for financial stability," IMF economists wrote.

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History of this topic

NBFCs turn to other avenues as bank credit slows on repeated RBI warnings
1 week, 4 days ago

NBFCs turn to other avenues as bank credit slows on repeated RBI warnings

Live Mint  

India’s non-bank financiers have heeded calls from the Reserve Bank of India to diversify their borrowing profile and are now gradually moving towards more market borrowings and other avenues such as overseas borrowing and securitization or asset sales instead of relying solely upon bank loans. Top NBFCs have seen the share of bank credit in their total debt fall significantly …

India's non-banking financial sector grew by 10%; declined globally by 3 %
6 months, 1 week ago

India's non-banking financial sector grew by 10%; declined globally by 3 %

Hindustan Times  

India's non-banking financial sector registered a growth of 10 per cent however globally the sector declined by 3 per cent, highlights a report by SBI. The report highlighted India as the third-largest entities in the non-banking financial sector, following the United States and the United Kingdom. However, Economic Function 2 entities i.e., entities undertaking lending activities, which are akin to …

Financial stability challenges need to be discussed, IMF MD echoes RBI governor
6 months, 2 weeks ago

Financial stability challenges need to be discussed, IMF MD echoes RBI governor

Hindustan Times  

Echoing the sentiment expressed by Reserve Bank of India Governor Shaktikanta Das, Kristalina Georgieva, Managing Director, International Monetary Fund, underscored the need to discuss the financial stability challenges in a separate discussion in Washington D.C. Kristalina Georgieva, managing director of the International Monetary Fund. She underscored the challenges posed to the financial sector due to the introduction of new technologies …

Here's why NBFCs will have to look beyond banks for funds
11 months, 3 weeks ago

Here's why NBFCs will have to look beyond banks for funds

Live Mint  

Mumbai: Non-bank lenders that borrow heavily from commercial banks to lend further may need to diversify their funding sources in the year ahead, given the rising competition for bank credit, and higher risk weights on loans to these lenders, experts said. “The idea is to improve funding access to productive sectors, but the regulations can lead to customers paying more …

ECONOMIC PERSPECTIVES | No concrete outcomes at IMF and World Bank Spring Meetings
1 year, 7 months ago

ECONOMIC PERSPECTIVES | No concrete outcomes at IMF and World Bank Spring Meetings

The Hindu  

Published : May 04, 2023 11:00 IST - 11 MINS READ Ministers, central bankers, officials, and civil society activists returning home from Washington after the Spring Meetings of the World Bank and the International Monetary Fund held in April 2023 were not clear what the outcomes of the meetings, however minor, were. The IMF’s record, thus far, has been marked …

Banks are in turmoil but a bigger financial crisis may be brewing elsewhere
1 year, 8 months ago

Banks are in turmoil but a bigger financial crisis may be brewing elsewhere

CNN  

London CNN — The International Monetary Fund warned this week of “vulnerabilities” among so-called non-bank financial institutions, saying global financial stability could hinge on their resilience. “Shadow banks cannot access emergency central bank funding in times of stress and we don’t expect governments to use taxpayers’ funds to recapitalize a failed shadow bank,” the firm said. “This means that public …

India must capture all segments of financial market to fuel growth: IMF
3 years, 8 months ago

India must capture all segments of financial market to fuel growth: IMF

The Hindu  

India is on the right track and is innovating on the policy side, including on digital identity and payments, but it also needs to capture all the segments of the financial market and institutions to make sure that every piece fits together like a puzzle to fuel growth in the country, according to a top IMF official. “The goal is …

Policy roll-back may dent banks’ health, says RBI
3 years, 11 months ago

Policy roll-back may dent banks’ health, says RBI

The Hindu  

In 2020-21, as policy support is rolled back, the impact of the COVID-19 pandemic may dent the health of the banks and non-banks, the Reserve Bank of India said in its Report on Trend and Progress of Banking in India 2019-20. This is a statutory publication in compliance with Section 36 of the Banking Regulation Act, 1949 and this Report …

NBFCs will continue to face liquidity, asset quality risks: Fitch
4 years, 5 months ago

NBFCs will continue to face liquidity, asset quality risks: Fitch

Live Mint  

MUMBAI: India's non-bank financial companies will continue to face elevated liquidity and asset quality risks, even as economic activity picks up with the easing of the nationwide lockdown, according to global rating agency Fitch Ratings. Non-banks, facing a liquidity shortage ever since Infrastructure Leasing and Financial Services Ltd defaulted on its payment obligations, have been under renewed strain as banks …

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