The new (dis)order of our financial system

Some of our non-banking finance companies are staring at a Northern Rock moment if they do not put their house in order

Many analysts are defining the near-collapse of Infrastructure Leasing & Financial Services Ltd (IL&FS) as the Lehman moment for India. We need to wait as the scene is still unfolding but some of the non-banking finance companies (NBFCs) are definitely staring at a Northern Rock moment if they do not put their houses in order. In September 2017, the UK retail bank Northen Rock asked the Bank of England, as lender of the last resort, for a liquidity support after it found its access to short-term money market frozen, and a depositor run followed. 

Northern Rock built long-term assets largely