NBFC regulation has received increasing attention because such entities contribute to credit delivery but may also generate systemic vulnerabilities if leverage, liquidity, or governance weaknesses are not controlled. A major regulatory concern regarding NBFCs is:

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Economics · Non-Banking Financial Companies (NBFCs)

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the possibility that rapid growth without adequate prudential safeguards may create financial instability

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Answer 1

the fact that all NBFCs accept demand deposits like banks

Answer 2

that they are outside all supervisory frameworks by law

Answer 3

the possibility that rapid growth without adequate prudential safeguards may create financial instability

Answer 4

their inability to undertake any lending activity at all

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