Investor Concerns Rise Over Indian Shadow Banks Following Debt Accumulation

In a cautious turn of events, numerous investors are beginning to express alarm regarding the stability of India's shadow banking sector. This uncertainty comes in the wake of an aggressive debt accumulation phase that these non-bank financial institutions (NBFIs) have undergone. Predominantly fueled by the lending boom from 2018 to 2022, the alarm bells are ringing loudly as the consequences of the debt binge seem to be surfacing.

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Secretive Shadow Banks Utilize Innovative BoE Tool Amid Financial Scrutiny

The Bank of England (BoE) has recently launched a new financial facility aimed at providing support to non-bank financial institutions, commonly known as shadow banks. However, details regarding the identities of these shadow banks remain shrouded in secrecy, raising concerns and interest in the financial community. The introduction of this tool marks a significant step in the BoE’s efforts to monitor and enhance financial stability within the market.

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