Systemic risk: Why non-banks have begun to haunt financial stability again

Systemic risk: Why non-banks have begun to haunt financial stability again

Non-bank lenders faced with bad loans can rattle the banks they borrow from, as seen in America’s latest mini crisis of subprime auto loans. Financial regulators from the US to India should stay watchful. Given a web of links that can cause knock-on effects, it’s better to be safe than sorry.