Saurabh Mukherjea's Team Marcellus has explained that the RBI's decision to increase risk weights in unsecured credit and NBFC credit from 100% to 125% is with a view to curb systemic risk posed by the sharp growth in the banking system. The effect of this move is that lenders have to set aside more equity capital for these credit risks.
The impact of this move will be more pronounced on the business models of ‘fintechs’ with large unsecured books & will lead them to curb excessive risk…
Quality lenders to benefit from RBI’s credit shakeout: Saurabh Mukherjea
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