RBI toughens liquidity rules for non-banks in wake of 2018 stress

reserve-bank-of-india-sign

The Reserve Bank of India has moved to toughen its requirements for liquidity risk management at non-bank financial companies (NBFCs), including the imposition of a Basel-style liquidity coverage ratio.

The move follows the 2018 default of IL&FS, a non-bank infrastructure finance firm, which spread fears of knock-on effects throughout India’s financial markets, triggering a liquidity crunch.

“An analysis of the recent developments in the NBFC sector pointed to the need for a stronger asset

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: