‘NHB’s norms will not address credit risk of HFCs’
   Date :18-Mar-2019

 
 
 
THE National Housing Bank’s proposed guidelines to tighten the capital adequacy and leverage norms is credit positive for housing finance company (HFCs) but will not address their issues regarding the key credit risk, funding and liquidity, says a report. NHB on March 4 proposed to increase the minimum capital adequacy requirement for housing finance companies (HFCs) to 15 percent in phased manner by March 31, 2022 from the present 12 percent.
 
 
Global rating agency Moody’ in a report said new guidelines would be credit positive because they would limit housing HFCs’ credit growth and cap maximum exposure to the debt capital markets.