Despite this long history of coexistence of NBFCs and banks, the Indian credit system is dominated by the latter. Lending by commercial banks accounts for 62% of total credit, followed by 20% from the corporate debt market and 18% from NBFCs. If we account for bank investments in the debt market and NBFCs, the share in overall credit can rise well above 75%. Such a homogenous credit system is likely to be more exposed to economic shocks, resulting in a severe credit crunch when bank credit dries up and the equity market declines.