Regulatory wrinkles should be ironed out to give HFCs a better deal: Parekh

Parekh said his personal view was that Regulation and supervision are critical functions in any financial system and it is important that trust between a regulator and regulatee is never compromised.

Housing finance companies (HFCs) need to get better terms including a level playing field in regulations vis-a-vis banks as accounting standards are different. Also, regulators should address the issue of loan takeovers and rule that unintentionally require HFCs to maintain excess liquidity, said Deepak Parekh, chairman HDFC Ltd.

In communication to shareholders of Housing Development Finance Corporation (HDFC), Parekh said the current environment (COVID-19 pandmei) has proved that there can be no better protection for a borrower than home loan insurance and home insurance. Hence, insurance loans to the home loan customer should be considered as an integral component of