The recent central bank-mandated increase in risk weighting is expected to have varying effects on non-banking finance companies (NBFCs), with the steeper impact anticipated for higher-rated NBFCs. Despite the heightened risk weighting, lower-rated lenders may face greater challenges, as banks may still find it financially viable to lend to larger non-bank borrowers with comparatively lower risk profiles.
The RBI has raised risk weight by 25 per cent on consumer credit exposure of banks and NBFCs; the move is expected to raise lending rates for borrowers
RBI increases risk weights on consumer credit exposure of banks, NBFCs to 125% from 100% thehindu.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindu.com Daily Mail and Mail on Sunday newspapers.
India's Central Bank Tightens Norms for Consumer Loans bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
RBI hikes risk weights on unsecured bank, NBFC loans by 25 bps thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.