Declining bank deposits raise concerns about NBFC's fundraising capacity: Report
The Business Guardian|August 12, 2024
Amid the concerns of declining deposits at banks, CareEdge Ratings anticipated that the credit-deposit ratios may pose a concern to the Non-Banking Financial Companies (NBFCs).
Declining bank deposits raise concerns about NBFC's fundraising capacity: Report

“Bank’s credit-deposit ratios raise concerns about NBFCs’ ability to secure funds,” it said.

By definition, the credit-deposit ratio (CD ratio) is a tool that measures how much of a bank’s deposits are lent out as loans.

The report by the rating agency added that enhanced regulatory supervision will lead to higher compliance costs. However, emphasising the need to have greater supervision, it noted its importance for the stability of the sector.

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