A Case for Corporate Ownership of Banks
The question of permitting Non-Financial Corporates (NFCs) into banking is well debated. While the jury is still out, the bias is clearly towards ‘NFC ownership of Banks is bad’. However the existing template of bank licensing that excludes NFCs’, is not without loopholes either. The moot points, therefore, are – does NFC ownership significantly increase the existing risks? and, can the risks be mitigated? In this article, we probe these questions, making a case for having NFC owned banks