Bank Seizure Dulls Hope For Quick India Shadow Bank Revival
- Many non-bank lenders are still unable to boost lending
- Best-rated shadow banks access credit again on good terms
Police officers observe customers standing in line outside a Yes Bank Ltd. branch in Mumbai, India, on March 6.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s decision to seize control of its fourth-largest private bank at a time when the coronavirus is roiling markets risks prolonging a credit crunch among the nation’s non-traditional financiers.
The Yes Bank Ltd. takeover last week marked the first instance of a large bank falling prey to contagion from the shadow-lender crisis that policy makers have struggled to contain for 18 months.