Shadow Banking

Alive and kicking: What common thread links the new-age NBFCs?

Using their imagination,new-age shadow banks have shown that their business model can fly

China drafts rules for overseeing trust firms to curb shadow banking

The once-freewheeling trust industry, at the heart of a vast shadow banking sector, for years helped channel funds into companies that struggle to obtain bank credit via opaque structures

Growth of shadow banks poses threat to financial stability: RBI report

Balance sheet expanded but asset quality deteriorated, says RBI report

Reserve Bank of India may curb first-loss default guarantees

Only regulated entities, rated arrangements can pass muster

Best of BS Opinion: Central control of health care, goodbye shadow banking

Here are the best of BS Opinion pieces of the day

Goodbye shadow banking

Bad loans in some NBFCs will definitely rise but no one should complain. They are no longer shadow banks

Top Headlines: WPI makeover on cards, number of air travellers doubles

Our top headlines on Monday track the latest developments

Archegos meltdown to intensify shadow banking regulatory scrutiny: Report

The implosion of Archegos Capital and the resulting losses for global banks is likely to intensify regulatory efforts to curtail the ballooning shadow banking sector and shed light on its risks

Small business lender Five Star gets $234 mn in new investment round

Chennai-based registered non-banking finance company will use the capital to expand its business.

Strengthening regulation

Growth of NBFCs needs better supervision by RBI

RBI discussion paper proposes four-tier structure for NBFC regulations

Paper has also sought to raise net-owned funds required for new NBFCs from Rs 2 cr to Rs 20 cr. Timeline of five years for existing NBFCs to adhere to new norms

A surge in bad debt is set to further worsen India's shadow bank crisis

Non-performing assets already swelled in the most recent data to the highest in at least five years, at 6.3% as of March 2020 even before the worst of the pandemic impact, the RBI said

Indian shares drop as shadow lenders fall on fears of tighter rules

Gains in heavyweights HDFC Bank and Reliance Industries capped losses

RBI likely to propose stricter regulations for shadow banks: Report

RBI looks to strengthen solvency and sustainability of a sector that has been showing signs of stress in recent years

Hedge fund revises bid for Indian shadow lender to skirt RBI delay

Revamp follows delays in regulatory approval for deal; reworked deal focuses on purchase of assets from lender

Borrowing costs ease for NBFCs after RBI pumps more cash in credit market

India's central-bank move to pump more cash in the credit market has improved the health of shadow lenders, helping to assuage concerns about their revival prospects

Recovery of shadow banks in doubt as lenders take a hit from Covid-19

Average spreads on the lenders' AAA rated five-year bonds rose for the first time in four months in September

As Covid ravages India, NBFCs ride out the storm with help of stimulus

India's non-bank lending sector was hit by a crisis in 2018 when a large financier unexpectedly defaulted, and the nation now needs it to stay healthy

Credit crisis in India will spur more opportunities for KKR: Brian Dillard

Despite the opportunities, KKR has suffered setbacks in India, where a long-running shadow banking crisis followed by the devastation of the pandemic has crippled the economy

India's troubled shadow lenders show signs of revival on stimulus

The sound health of shadow banks is vital because they form the backbone of the Indian economy in lending to a wide range of borrowers from small merchants to business giants