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By Promit Mukherjee
MUMBAI (Reuters) – Reserve Bank of India Governor Shaktikanta Das said the central bank would closely monitor the health of non-bank financial corporations (NBFCs) and would not hesitate to take corrective action if necessary to solve the problems badociated with the shadow banking system. 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. Debt DHFL to "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 by focusing 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 resolving stressed badets after India's Supreme Court overturned its previous directives in April, saying it had overstepped its powers.
The new rules "will support improvements in the credit culture" and help strengthen and strengthen the Indian financial system, said Das 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, the PSB must access the capital market for the mobilization of capital," he said.
(Report by Promit Mukherjee, edited by Euan Rocha and Christopher Cushing)
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