(Bloomberg) — The risks of contagion are rising in the Indian financial sector and any failure of a large shadow lender could lead to a “solvency shock” to banks, S&P Global Ratings said Wednesday.India’s shadow lenders get a substantial part of their funding from banks, and the weaker ones have seen a sharp rise in their borrowing costs and a big drop in their equity values, the ratings firm said in a report.That could have knock on effects on India’s banks, especially if they are perceived to have governance issues.“The credit profile of a bank could deteriorate sharply due to …read more
Source:: Yahoo Finance
