Impact of Basel III Norms on Large NBFCs and Their Lending Strategies
The Indian financial sector has witnessed significant transformations in recent years, with Non-Banking Financial Companies (NBFCs) playing a pivotal role in bridging the credit gap for businesses and individuals. Among the regulatory frameworks shaping their operations, Basel III norms have emerged as a crucial factor influencing the risk management and lending strategies of large NBFCs in India. For NBFCs looking to comply with regulatory requirements and expand responsibly, understanding Basel III norms and ensuring proper NBFC Registration in India is essential. What Are Basel III Norms? Basel III is a global regulatory framework established by the Basel Committee on Banking Supervision to strengthen the regulation, supervision, and risk management within the banking sector. While initially focused on banks, its principles also impact large NBFCs in India. The key objectives of Basel III norms include: Enhancing capital adequacy: Ensuring NBFCs maintain sufficient capita...
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