The regulatory requirements are also higher in the case of deposit-taking NBFCs vis-à-vis the non-deposittaking ones which has helped to contain leverage in this sector.
By the measure taken by the Bank, financial institutions are provided with three channels to raise capital; (1) capital raising by financial institutions through markets, (2) capital raising based on the Act on Special Measures for Strengthening Financial Functions, (3) borrowing subordinated loans from the Bank. Subordinated loans by the Bank will work effectively in conjunction with the other two measures to raise capital.