RBI 'watchful' of unsecured loan flows into stock market: Shaktikanta Das

Quick Summary:

Should investments underperform, borrowers may find themselves unable to meet repayment obligations, placing both the borrowers and the lending institutions at financial risk.

Governor Das assured that the potential scale of such investments currently does not pose a systemic risk to the banking sector.“Our broad assessment suggests that, at present, this is not something that could destabilise the banking system.

In November 2023, the RBI increased the risk weights on unsecured credit, making such lending more capital-intensive for banks.

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Article Details

Category: BusinessFinance

Markets: India

Topics: Monitoring loans Lenders NBFCs Institutional lender Unsecured loan Stock market Unsecure bank loand Loan fund in stock market BFSI event Stock market risk

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-06 @ 15:51:53 (2 weeks ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 600 words

Reading Time: 4 minutes read

Sentences: 22 lines

Sentence Length: 28 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 23445623

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