I examine the impact of financial friction, specifically borrowing from non-bank financial Corporations (NBFCs), on firm-level investment responses to the Reserve Bank of India (RBI) monetary policy shocks. My empirical analysis demonstrates that when firms borrow from NBFCs, their investment responsiveness to RBI monetary shocks decreases. I develop a quantitative New-Keynesian dynamic stochastic general equilibrium model with investment, default risk, and bank and NBFC borrowing to interpret this result. Until recently, the RBI’s stringent regulations did not apply to NBFCs. In addition, they don’t have creditor rights under various regulations, including the SARFECI Act.

We examine how global institutional funds respond to news-based economic policy uncertainty (EPU) in their investment destinations. On average, we find a negative flow-EPU relationship for global funds, with that negative response being weaker for destinations which are more familiar, share similar legal and cultural origins, have strong democratic government and legal rights, and are more informationally transparent. We document a significant transmission of EPU shocks internationally via multi-country presence of the global institutional funds.

This Conference would provide a forum to the heads of banks’ risk function to meet and discuss the emerging issues and new challenges surrounding risk management against the backdrop of financial sector developments.

This one-day virtual conference will provide opportunities to the participants to interact with experts & regulators in the areas of audit and audit practices, besides the emerging trends and challenges in internal audit

Capital Accumulation and Market Monitoring in India: Opportunities and Challenges” by Prof. Amil Dasgupta, London School of Economics

Considering the importance of the Agro-MSME sector to the economy and the country, it is imperative for senior officials in the financial sector to understand the various enablers in the form of policy and regulations available to this sector, technical aspects of Agro-MSME financing and the significant contribution which the sector can make to the profitability of financial intermediaries. Sensitizing bankers to the importance of this crucial activity will accelerate and enhance penetration of growth to the interior areas.