Medium And Small NBFCs Eye Credit Risk Mitigation Tools To Offset Exposure
After the Reserve Bank of India allowed them, middle and base layer non-bank lenders are looking at use cases for credit risk mitigation tools available to them. “The whole spirit of these guidelines is that NBFC-ML and NBFC-BL will now be able to mitigate credit risk on their balance sheets and go for efficient allocation of capital,” according to Pankaj Naik, director, financial institutions at India Rating & Research. While the instructions in this regard are yet to be issued, the central bank’s idea behind this is to ‘hormonise’ the rules for all NBFC’s, RBI Governer Shaktikanta das said in a statement on Oct 6, after announcing the monetary policy committee’s decision.
Read Full Article Here : www.bqprime.com