Home / Finance / News / Declining long-term market funding for NBFCs a concern, says RBI

Declining long-term market funding for NBFCs a concern, says RBI

It has the potential to heighten the liquidity risks the sector is already facing after the IL&FS debacle, FSR said

Premium

While market funding for the sector as a whole has reduced, the sufferers because of this have been smaller NBFCs

4 min read Last Updated : Jul 25 2020 | 12:42 AM IST

The unfavorable market condition has resulted in declining share of long-term market debt in the liability profile of shadow banks, and the gap has been filled by bank funding.

The declining market funding for non-banking financial companies (NBFCs) is a cause for concern as it has the potential to heighten the liquidity risks the sector is already facing after the IL&FS debacle, the Financial Stability Report (FSR) of the Reserve Bank of India (RBI) said.

While market funding for the sector as a whole has reduced, the sufferers because of this have been smaller NBFCs. Smaller, mid-sized NBFCs, which are AA or

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in