Latest news with #NBFIs
Hindustan Times
29-05-2025
- Business
- Hindustan Times
The changing contours of private credit
Despite a seemingly endless supply of and demand for private credit, the rapid expansion of the market has been a cause of concern for some regulators and executives. Should investors be worried? This brief explores certain aspects of private credit that warrant a close look—including the retailisation of the market and the current interest rate environment. It highlights the implications for financial stability, including the potential for finance to be rendered a disservice to the real economy. The financial cycle is never eradicated, nor is financial instability ever really extinguished. On the contrary, financial risk moves like liquid mercury out of certain entities and into others. And increasingly credit-fuelled economies are especially prone toward credit crises. In many ways, regulation can be backward-looking, and thus can often be directed toward the last crisis. Over 17 years since the Global Financial Crisis (GFC), regulators maintain a keen focus containing banking crises; justifiably so, as the recent banking wobbles in the United States (US) in March 2023—and those which rippled across the Atlantic—demonstrate that risks are still inherent (and perhaps contagious) within the global financial system. And yet, looking beyond the traditional banking system, potential vulnerabilities lurk within certain elements of the system of non-bank financial institutions (NBFIs). The late American economist, Hyman Minsky observed that strong medicine can have strong side effects. And one side effect of the regulation imposed upon globally systemic important banks (GSIBs) in the wake of the GFC has been for a swelling of assets under management (AUM) held by the NBFIs. As shown in Figure 1, since the GFC, the spread between the global AUM held by the shadow banks (NBFIs) and those held by the traditional banks has widened considerably. Accordingly, the Financial Stability Board (FSB) has been focused on 'strengthening the resilience' of the NBFIs on a global basis, given the lack of transparency and systemic stress testing within the industry. This paper can be accessed here. This paper is authored by Alexis A Crow, ORF, New Delhi.
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Business Standard
22-04-2025
- Business
- Business Standard
PSU banks lead incremental credit while share of private banks falls
The state-owned banks continued to be the major drivers of incremental credit, while the share of private sector banks has declined, the Reserve Bank of India (RBI) said in a bulletin. At the same time, banks' credit growth moderated to 12 per cent in FY25 from around 15 per cent in March 2023. Although non-food credit increased at a decelerating pace of 12 per cent year-on-year (Y-o-Y), compared to 16.3 per cent a year ago, according to the bulletin. Meanwhile, agricultural credit growth remained in double digits at 11.4 per cent in February 2025, though it moderated from 20.0 per cent in February 2024. Despite some deceleration in the growth of credit to the services sector and personal loan segments at 13.0 per cent and 14.0 per cent, respectively, in February 2025, they remained the prime drivers of non-food credit growth during the second half of FY25. Further, the bulletin mentioned that credit to the micro, medium and small enterprises (MSME) segment remained robust, registering a growth of 12.3 per cent in February 2025. However, credit to the large industry segment recorded modest growth in H2. In the Union Budget for FY26, the credit guarantee cover for micro and small enterprises was increased from Rs 5 crore to Rs 10 crore. Going forward, the MSME sector is expected to receive a boost in credit due to changes in classification and priority sector lending treatment. On the other hand, credit growth to the services sector moderated in H2, mainly attributed to decelerated credit growth to non-banking financial institutions (NBFIs). Credit growth of non-banking financial companies (NBFCs) fell to 13.3 per cent in February 2025 from 18.6 per cent in February 2024, reflecting the impact of the increase in risk weights, which has now been reversed effective April 1, 2025.
Associated Press
10-04-2025
- Business
- Associated Press
Montran Wins Central Banking Award for Payment Services Development
NEW YORK, April 10, 2025 /CNW/ -- Montran has been honored with the 'Payment Services Development' award at the Central Banking Awards. This prestigious recognition underscores Montran's commitment to achieving financial infrastructure interoperability through our Instant Payments System (IPS). The deployment of the Montran IPS in various regions around the world has been instrumental in empowering central banks, clearinghouses, commercial banks, NBFIs, MNOs, merchants, agents and end-users with a cutting-edge interoperable instant payment solution. With ten live instant payment systems (IPS) deployed across the globe—from Angola to Panama—Montran continues to empower financial ecosystems with innovative solutions that enhance transaction speed, security, and accessibility. The recent go-live of BORICA's TIPS Connectivity Module in Bulgaria further demonstrates Montran's commitment to advancing cross-border instant payments, ensuring operational efficiency and compliance with European standards. Driving Instant Payments Forward Montran's IPS platform has been designed for scalability, flexibility, and security, making it the preferred choice for central banks and national clearing systems. Built to support 24/7 real-time processing, the system offers: Advanced fraud management to safeguard transactions Seamless QR code-based payments for instant digital transactions 5,000+ transactions per second processing capacity Direct integration with international systems, including ECB TIPS and PAPSS Since the launch of its first IPS production system in 2018, Montran has continuously enhanced its platform with proxy alias modules, advanced liquidity management, and configurable fraud detection tools—ensuring a future-proof payment infrastructure. 'As instant payments become the global standard, we remain committed to helping central banks and financial institutions accelerate digital transformation with scalable, reliable financial infrastructure,' said Cristi Jurca, IPS Product Owner at Montran. Global Expansion & Future Innovations Montran's instant payments ecosystem is growing rapidly, with three additional systems currently in progress and major initiatives underway in Guatemala and Asia. The company is also focused on integrating IPS with emerging financial technologies, including Central Bank Digital Currencies (CBDCs) and enhanced fraud risk management solutions. 'The evolution of digital payments is accelerating, and Montran is leading the way by providing robust, real-time financial solutions that drive economic growth and financial inclusion,' said Ciprian Tesa, Chief Technology Officer at Montran. Montran remains committed to its purpose to unify the world financially by equipping central banks, financial institutions, and payment service providers with next-generation digital payment technology. About Montran Montran is the leading provider of Payment and Capital Market Infrastructure solutions, servicing the world's foremost financial institutions with mission critical installations and operations in over 90 countries. Discover more at
Zawya
25-02-2025
- Business
- Zawya
Visa and MDP join forces to empower fintech growth across Egypt
Cairo, Egypt: in a strategic partnership that is set to accelerate the fintech growth in Egypt, MDP, a leading payment enabler, and Visa, a global leader in digital payments, unveiled a groundbreaking partnership designed to empower Fintechs and NBFIs throughout Egypt to seamlessly deploy their financial services and drive significant growth and innovation within the market. This partnership underscores the critical importance of fostering financial inclusivity and innovation in Egypt's rapidly evolving fintech landscape. This collaboration will transform Africa's financial landscape, unlocking economic opportunities, fostering growth, and connecting markets across the continent. By establishing a strong foundation in Egypt, it aims to spark a wave of fintech development and inspire future partnerships, envisioning a continent where innovation empowers individuals to thrive in a digital economy. MDP, with its comprehensive suite of payment processing and issuing capabilities, has a proven track record of empowering over 40 fintechs in the region. This expertise, combined with Visa's unparalleled resources and extensive global network serves as a crucial payment channel, connecting issuers with fintechs and promoting a seamless financial ecosystem, the partnership will provide fintech companies with the necessary tools, security, and scalability to thrive in the digital payments ecosystem. The collaboration between Visa & MDP not only highlights the commitment of both organizations to driving financial inclusion but also emphasizes the transformative impact this partnership will have on the Egyptian market. By leveraging their combined strengths, Visa & MDP aim to create a robust and seamless financial ecosystem that fosters innovation and growth, ultimately benefiting consumers, businesses, and the broader economy. Ahmed Nafie, CEO of MDP commented 'As we looked to the future back in 2020, we recognized the rising demand for our digital payment solutions from fintechs. Since then, MDP has successfully enabled and empowered over 40 fintechs in the region, showcasing our expertise in delivering end-to-end payment solutions. This partnership with Visa marks a significant milestone in our journey, as we will be able to further enhance our payment enabling solutions to better serve the fintech industry' Malak El Baba, Vice President and Egypt Country Manager, Visa. "As a leader in digital payments, we're committed to empowering fintechs in Egypt to achieve their full potential and drive financial inclusion. Fintechs are at the forefront of innovation in the payments ecosystem, and our partnership with MDP aims to grow the sector through enabling fintechs to seamlessly launch their payment products, allowing them to deliver better payment services in less time." This partnership between Visa & MDP is expected to transform the fintech landscape in Egypt, driving innovation, growth, and financial inclusion. -Ends- About MDP: MDP is a leading card issuer & modern payment processor. It enables businesses to roll out their financial solutions with end-to-end payment infrastructure offerings – from personalized card production to financial transaction processing and digital payment solutions. MDP has been well-positioned in the market for more than 30+ years and is acknowledged for accelerating payment experiences through a tech-driven approach. MDP embraces the global adoption of innovative, scalable, and secure emerging fintech solutions that provide seamless omni-channel customer experiences. MDP is headquartered in Cairo, Egypt, and has an extended footprint in more than 40 countries globally. About Visa: Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at About Visa, and @Visacemea MDP Nour Shaalan Senior Marketing Specialist
Globe and Mail
20-02-2025
- Business
- Globe and Mail
Microfinance Market Poised to Reach US$ 496.9 billion by 2032 with a 10.8% CAGR
Microfinance Market Research Report By Type of Institution (Banks, Non-Banking Financial Institutions (NBFIs), Cooperatives, Credit Unions), By Product Type (Microloans, Savings Accounts, Insurance, Money Transfers), By Loan Purpose (Business Development, Education, Housing, Agriculture), By Target Customer (Microentrepreneurs, Low-Income Households, Women, Youth) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032 The global Microfinance Market has experienced significant growth in recent years and is set to expand further over the coming decade. In 2023, the market size was valued at USD 237 billion and is projected to grow from USD 262 billion in 2024 to USD 496.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.8% during the forecast period (2023–2032). The market's expansion is primarily driven by financial inclusion initiatives, increasing demand for small-scale loans, and the digital transformation of microfinance services. Key Drivers of Market Growth Rising Demand for Financial Inclusion Microfinance plays a crucial role in providing financial services to underserved populations, particularly in developing regions. Governments and non-governmental organizations (NGOs) are promoting microfinance to empower low-income individuals and small businesses, driving market growth. Growth of Micro, Small, and Medium Enterprises (MSMEs) MSMEs rely on microfinance institutions (MFIs) for working capital and expansion funds, especially in emerging economies. The increasing number of small businesses and startups is fueling the demand for microcredit and microloans. Adoption of Digital Microfinance Services The integration of mobile banking, blockchain, and artificial intelligence (AI) in microfinance has improved accessibility and efficiency. Digital lending platforms and fintech innovations are enabling faster loan disbursements, reducing operational costs, and minimizing risks. Government and Regulatory Support Governments worldwide are implementing policies to support microfinance initiatives, including interest rate subsidies, financial literacy programs, and credit guarantee schemes. Regulatory frameworks are evolving to enhance transparency and security in the microfinance sector. Increasing Participation of Impact Investors Social impact investors and microfinance investment funds (MIVs) are actively supporting microfinance institutions, providing capital to expand financial access in rural and unbanked regions. The rising interest in sustainable finance is contributing to market expansion. Download Sample Pages - Key Companies in the Global Microfinance Market Include Kiva MicroVest Accion International PRODEM SKS Microfinance Women's World Banking Opportunity International Plan International BRAC FINCA International Market Segmentation To provide a comprehensive analysis, the global Microfinance Market is segmented based on service type, provider type, and region. 1. By Service Type Microcredit: Small loans provided to individuals and businesses. Micro-Savings: Low-income individuals using microfinance institutions to save money. Micro-Insurance: Affordable insurance products tailored for underserved populations. Remittance Services: Money transfer and payment services for low-income individuals. 2. By Provider Type Microfinance Institutions (MFIs): Dedicated institutions offering small loans and financial services. Banks: Commercial and rural banks integrating microfinance services. Non-Governmental Organizations (NGOs): Non-profits supporting microfinance initiatives. FinTech Companies: Digital platforms and mobile lending apps providing microfinance solutions. 3. By Region North America: Increasing demand for microfinance solutions in underserved communities. Europe: Growth driven by social impact investing and financial inclusion policies. Asia-Pacific: Largest and fastest-growing region, with strong microfinance adoption in India, Bangladesh, and Indonesia. Rest of the World (RoW): Expanding financial access in Latin America, Africa, and the Middle East. The global Microfinance Market is on a strong growth trajectory, driven by digital innovation, financial inclusion efforts, and increasing support for small businesses. As microfinance institutions continue to evolve with technology-driven solutions, the industry is expected to play a key role in poverty reduction and economic development. With vast opportunities across various regions and financial segments, the future of the microfinance sector looks promising. Related Report – Machine Learning in Banking Market Musical Instrument Insurance Market About Market Research Future – At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research Consulting Services. The MRFR team have a supreme objective to provide the optimum quality market research and intelligence services for our clients. Our market research studies by Components, Application, Logistics and market players for global, regional, and country level market segments enable our clients to see more, know more, and do more, which help to answer all their most important questions.
