NBFCs like the Asset Finance Companies (AFC) operating in the SME and Transport financing segments and Micro Finance Institutions (MFI) are very active as originators. Though the market had begun since the year 2000, the GFC obviously has its repercussions in Indian market as well.
The IMF states that “leaning against the wind” is primarily the responsibility of macroprudential supervision and not of monetary policy. Within the economic and monetary union a single monetary policy requires an additional instrument to address the asynchronous credit cycles in the EA Member States. The national macroprudential mandate therefore increases the degrees of freedom of the single monetary policy.