ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Are Indian NBFCs Shadow Banks? Do They Pose Systemic Risks?

An ongoing debate in India is whether or not Indian non-banking fi nancial companies (NBFCs) are “shadow banks”. This question appears important because we have learned from the ongoing global fi nancial crisis that shadow banking might create systemic risks which have been defi ned “broadly as the expected losses from the risk that the failure of a signifi - cant part of the fi nancial sector leads to a reduction in credit availability with the potential for adversely affecting the real

What Is Shadow Banking?

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