Das has raised concerns about the risk of non-bank expansion in financial intermediation.

• NBFIs’ size, complexity, and interconnectedness with local and global financial systems pose risks to financial stability.
• Hidden leverage and liquidity mismatches of these institutions can amplify shocks and strains throughout the financial system.
• Private credit, a major source of corporate financing, may shift supply-demand dynamics and result in poorer underwriting standards.
• High sensitivity to expected and unexpected CRE losses observed in banks due to high coverage ratios in loan books.