Non-Bank Financial Company

The council noted increasing interconnectedness of NBFIs with the financing system.

Lenders will have to gauge repayment capability using income and cash flows.

The NBFC plans to lend to MSMEs.

Loan growth for such entities is expected to be 15% per annum in the next two years.

They outpaced banks in growing their share of MSME loans.

Its new subsidiary will focus on Category II alternative investment funds.

Majority are NBFIs, and most are located in the Americas.

One NBFI failure is enough to trigger a domino effect and collapse a whole market.