Access to bond markets must be widened: RBI
MUMBAI: Bond markets need more depth and not just scale so that more enterprises can access market-based finance as the bank-led model will not be sufficient to meet future financing needs, RBI deputy governor Rohit Jain said. He emphasised that this will require more discerning investors to assess levels of risks.
"A wider range of enterprises must also progressively gain access to market-based finance. This cannot be achieved merely by introducing new instruments or encouraging investors to assume more risk. It requires investors with the capacity to differentiate and price credit risk, reliable recovery mechanisms, and markets through which such risk can be managed and redistributed.," Jain said.
"A wider range of enterprises must also progressively gain access to market-based finance. This cannot be achieved merely by introducing new instruments or encouraging investors to assume more risk. It requires investors with the capacity to differentiate and price credit risk, reliable recovery mechanisms, and markets through which such risk can be managed and redistributed.," Jain said.
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