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2019 | OriginalPaper | Buchkapitel

9. Non-banking Financial Intermediaries: International Experiences

verfasst von : Prof. Dr. R. Kannan, Prof. Dr. K. R. Shanmugam, Prof. Dr. Saumitra Bhaduri

Erschienen in: Non-Banking Financial Companies Role in India's Development

Verlag: Springer Singapore

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Abstract

The non-bank financial institutions or non-bank businesses or shadow banks (SBs) are internationally recognized as financial intermediaries/activities involved in “credit intermediation outside the conventional banking system and constitute about one-fourth of total financial intermediaries worldwide” (IMF 2014).

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Fußnoten
1
According to Shrestha (2007), “A well-developed non-bank financial sector is viewed as an important component of a healthy and efficient financial system that can provide a sound base for growth and prosperity in the economy”. Studies such as Levine, Loayza and Beck (1999) empirically prove this.
 
2
The financial system plays a major role in the smooth and efficient functioning of the economy. Its major contribution is to channel resources from individuals and companies with surplus resources to those with resource deficits. In this process, the financial system satisfies the savings needs of the country and also facilitates the accumulation of investment capital that is critical to growth and development. Further, it also revolves the risk preferences of individuals and companies (Carmichael and Pomerleano 1999).
 
3
The total financial assets comprise the assets of central banks, banks, insurance companies, pension funds, public financial institutions, financial auxiliaries and other financial intermediaries (or NBFIs).
 
4
This section is primarily based on FSB (2018).
 
5
The financial markets fail to produce efficient competitive outcomes for one or more of the following reasons: (i) anticompetitive behaviour, (ii) market misconduct, (iii) information asymmetry and (iv) systemic instability.
 
6
There are 20 brokerage companies.
 
7
This would obviously create systematic risks or regulatory arbitrage.
 
8
There are about 200 finance companies, 32 money market funds and 57 brokerage companies in Indonesia.
 
9
Structured finance vehicles (SFVs) are the largest sector in Singapore. They are considered as shadow banking or NBFIs only to the extent that they intermediate credit (FSB 2014a).
 
10
Malaysia has the largest number of financial companies; most of them are credit specialized companies including credit card companies.
 
11
In some nations, there is sub-national regulation (e.g. provinces in Canada, states in USA) or sub-national supervision (e.g. prefectures in Japan) for NBFCs.
 
Metadaten
Titel
Non-banking Financial Intermediaries: International Experiences
verfasst von
Prof. Dr. R. Kannan
Prof. Dr. K. R. Shanmugam
Prof. Dr. Saumitra Bhaduri
Copyright-Jahr
2019
Verlag
Springer Singapore
DOI
https://doi.org/10.1007/978-981-13-3375-0_9