Home / Finance / News / Impact of NBFC failures on banking system has reduced in past 6 months: RBI

Impact of NBFC failures on banking system has reduced in past 6 months: RBI

Following NBFCs, HFCs were the second-largest borrowers of funds from the financial system with gross payables of around Rs 5.9 trillion and gross receivables of only Rs 33,110 crore as of end-Sept

Premium

3 min read Last Updated : Dec 28 2019 | 2:58 AM IST

The Reserve Bank of India (RBI), in its financial stability report (FSR) 2019, said that stress tests showed that around 8.6 per cent of individual non-banking financial companies (NBFCs) will not be able to comply with the minimum regulatory capital requirement of 15 per cent.

Also, around 14.2 per cent of the companies will not be able to comply with the minimum regulatory capital to risk (weighted) assets ratio (CRAR) norms.

The bi-annual financial stability report noted that failure of an NBFC with the maximum capacity to cause solvency losses to the banking system will lead to a loss of

Topics : Reserve Bank of India RBI NBFCs NBFC sector

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