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* Take steps to maintain the financial stability of NBFCs if necessary
* Publish guidelines for managing liquidity risk in NBFCs
* Put in place a framework for closer monitoring of these companies
* New rules on stressed badets to maintain an improved credit culture
By Promit Mukherjee
MUMBAI, June 9 (Reuters) – Shaktikanta Das, governor of the Reserve Bank of India, said the central bank would closely monitor the health of non-bank financial corporations (NBFCs) and would not hesitate to take action. corrective measures to remedy the problems of the shadow banking sector.
"We will not hesitate to take the necessary steps to maintain financial stability in the short, medium and long term," said Das during a speech delivered Saturday at a ceremony held in Pune, in the west of India.
The comment comes at a time when there are fears that India will be facing a major crisis in its shadow banking sector after the fall of the actions of Indian mortgage lender Dewan Housing Finance Corp. (DHFL) this week after two companies in India Credit evaluation have cut their point of view. DHFL debt at "default" levels.
Problems looming at DHFL occur nine months after a series of failures and failures of another important NBFC, infrastructure leasing and financial services (IL & FS), which have shaken the stock markets and fueled concerns caused by the malaise of the sector.
"The Reserve Bank will continue to monitor the activity and performance of this sector with a focus on key entities and their links to other sectors," he said in a statement. speech released Saturday on the RBI website.
The regulator will soon release the latest guidelines for liquidity risk management and will put in place a comprehensive IT framework to strengthen the supervision of NBFCs, said the governor.
Given the importance of NBFCs for the Indian economy, the Governor emphasized the need to strengthen the level of supervision of these companies to ensure strong credit growth and badet / liability management.
As part of initiatives to strengthen the supervision of NBFCs, the central bank is putting in place a system that ensures regular interactions with all stakeholders in the shadow banking value chain, such as auditors, credit rating agencies and financial institutions. rating and banks.
The central bank on Friday issued new guidelines on the resolution of stressed badets after the Supreme Court of India overturned its previous directives in April, claiming that it had exceeded its powers.
The new rules "will support improvements in the credit culture" and help strengthen the Indian financial system and make it resilient, Das said Saturday.
Das also urged Indian public sector banks (PSB) not to rely solely on government capital contributions to consolidate their balance sheets.
"Depending on the situation, PSBs should access the capital market for capital raising," he said. (Report by Promit Mukherjee, edited by Euan Rocha and Christopher Cushing)
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