Problem – Non-Banking Financial Companies (NBFC)
Name – Ashwini Bhimanpalli
Literature review
1. Inter-connectedness of Banks and NBFCs in India: Issues and Policy Implications
Exposures to banks in the form of deposits are, however, very limited. The discouragement of NBFCs from raising public deposits has resulted in substitution of public deposits with borrowings from the banking system.
2. Demand for NBFCs’ Credit
The NBFCs in India comprise a host of institutions. They mostly engage in investment, insurance, chit fund, Nidhi’s, merchant banking and alternative investments as their principal business.
3. Status and Role of NBFCs
India has a bank-dominated financial sector. However, the non-bank financial institutions (NBFIs) have also coexisted. The NBFIs consist of varieties of financial institutions that cater to a wide range of financial requirements.
4. Does Legal Status Affect Performance of Microfinance Institutions? Empirical Evidence from India
The transformation of NGOs to NBFCs may not improve the performance of Indian MFIs. These findings are expected to have substantial practical implications for managers of MFIs and for policymakers in framing policies for Indian MFIs.
5. A Review of Role and Challenges of Non-Banking Financial Companies in Economic Development of India
Large infrastructure financing to small microfinance, the sector has innovated over time and found ways to address the debt requirements of every segment of the economy. The industry has also responded positively to regulatory efforts to better understand risks and to address such risks through regulations. The sector adopted best practices in technology, innovation, and risk management as well as governance.
6. Securitization Market – The Pros and Cons of Securitization Market.
Securitization is a financial instrument has had an extremely significant impact on the world. The combination of securitization techniques with credit derivatives and risk transfer devices are continued to develop innovative methods for minimizing risk.
7. Social media and financial institutions in the Indian context
Facebook, Twitter and LinkedIn are the most widely used social media platforms for exploring new markets, developing new ideas, selling financial products, connecting with the customers and customer relationship management (CRM), banks and NBFCs are found to adopt these media pages to post important financial announcements.
8. The growth of a shadow banking system in emerging markets: Evidence from India
Forms a significant proportion of the NBFC liabilities, fluctuates in line with bank allocation to priority lending sectors, decreases as the banks expand in the rural areas relative to urban areas, but is virtually non-existent for the largest state-owned bank.
9. Regulatory Developments and Prudential Norms
NBFCs provide funding for various important economic activities, thereby contributing to the growth of the Indian economy. By this the NBFCs provide a healthy competition to the banks in terms of various service parameters.
10. The Non-Bank Sources of Microlending in India
Indian microfinance ecosystem consists of many specialized non-bank institutions that are active in the field of microlending . But this growth is geographically imbalanced, dominated by the large NBFC-MFIs and highly dependent on the banking sector support.
Conclusion
Non-Banking Financial Companies are regulated by reserve bank of India and Offer a range of financial services to people who are unable to access traditional banking services . Provide alternative investment opportunities to investors .Offer quick and easy loan .Provide insurance services to individuals and businesses.
Reference
1. Karunagaran A, 2012. “Inter-connectedness of Banks and NBFCs in India: Issues and Policy Implications,” Working Papers id:4692, eSocialSciences.
2. R. Kannan & K. R. Shanmugam & Saumitra Bhaduri, 2019. “Demand for NBFCs’ Credit,” India Studies in Business and Economics, in: Non-Banking Financial Companies Role in India’s Development
3. R. Kannan & K. R. Shanmugam & Saumitra Bhaduri, 2019. “Status and Role of NBFCs,” India Studies in Business and Economics, in: Non-Banking Financial Companies Role in India’s Development
4. Biswajit Ghose & S. Joplinshisha Paliar & Liha Mena, 2018. “Does Legal Status Affect Performance of Microfinance Institutions: Empirical Evidence from India,” Vision, , vol. 22(3),pages 316-328,September 2018
5. Afroze Nazneen & Sanjeev Dhawan, 2018. “A Review of Role and Challenges of Non-Banking Financial Companies in Economic Development of India,” International Journal of Economics and Financial Issues, Econjournals, vol. 8(6). pages 90-98.
6. Shyam Kumar, 2012. “Indian Securitization Market – The Pros and Cons,” Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 7(2), pages 65-70, October.
7. Snehal Bawre & Sujata Kar, 2019. “Social media and financial institutions in the Indian context,” International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 18(3), pages 343-355.
8. Acharya, Viral V. & Khandwala, Hemal & Sabri Öncü, T., 2013. “The growth of a shadow banking system in emerging markets: Evidence from India,” Journal of International Money and Finance, Elsevier, vol. 39(C), pages 207-230.
9. R. Kannan & K. R. Shanmugam & Saumitra Bhaduri, 2019. “Regulatory Developments and Prudential Norms,” India Studies in Business and Economics, in: Non-Banking Financial Companies Role in India’s Development, chapter 0, pages 37-60, Springer.
10. Lalitagauri Kulkarni & Vasant Chintaman Joshi, 2021. “The Non-Bank Sources of MicroLending in India,” Springer Books, in: Inclusive Banking In India, chapter 0, pages 77-98, Springer