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The purpose of this study is to explore whether the present measures being taken by the New Zealand (NZ) government are strengthening its non-banking sector effectively to address the recent financial crisis and ensure better financial stability to the economy.

The basic methodology used in this paper is the “documentary research method”. For this study, data has been collected from various published sources; e.g. The Bulletin, the Financial Stability Report and other publications of the Reserve Bank of NZ, publications by Statistics NZ and a number of NZ government Ministries, and some newspapers and magazines, etc.

We find that the NZ government is revamping the non-banking sector by introducing a prudential regime. However, we also find some gaps in the existing regulatory systems that need to be addressed to ensure soundness in the total system.

The basic limitation of documentary research will be applicable to this study. Further research may be carried out to investigate the policy responses of government from banking, corporate governance and other regulatory perspectives.

Our study identifies some gaps in current policy responses along with some suggestions for the future that may be taken into consideration by the respective policy-makers to further strengthen the support provided by policy responses to financial crises.

Our study provides a unique insight into the evaluation of post-GFC policy response and its effectiveness with regard to non-banking sector and, to our knowledge, the first of its kind in NZ in the post-global financial crisis period.

The mobilization of funds was severely affected with the linking of their funds mobilization to their internal owned funds. Therefore, the purpose of the study is to identify the mediating effects of funds with profitability and to focus on the funding strategy to maximize profits in the non‐banking financial sector in India.

The paper discusses various approaches to maximize profits. The study also examines trends in sources of funds using key financial variables. A formative model to capture the mediating effects of funds with profitability is tested using structural equation modeling (SEM) technique. The paper includes various financial variables including external and internal funds. These variables' relationship with the core operating profit is tested in a graphical structural equation environment using package software.

Mediating effects of borrowings with profitability are established. The paper concludes that the gap in funds can be matched effectively through mobilization of funds of short duration. The study establishes that a combination of fund raising strategies such as flotation of debentures, bank borrowings and short term funding program can affect profits.

The study is confined to non‐bank finance companies in a particular state in India. The geographical and demographical differences may affect generalization. However, care has been taken to match the geographical and demographical characteristics of the country.

The findings of this paper are of immense value for industry managers, lenders and for financial forecasting within the sector. New entrepreneurs can use the findings in their funding plans.

This chapter proposes a measure of systemic default interconnectedness between banks, non-banks, housing finance companies in India and globally systemically important banks based on variance decompositions associated with a multiple variable vector autoregression of probability of default of the institutions. We call it the “vulnerability spillover index” (VSI). The vulnerability indices capture all the major macro and financial stress events in the Indian and global economy explaining the interconnections between sectors and underlying reasons for spillovers and potential for a systemic crisis. Thresholds of VSI are calculated which may enable prediction of financial stress events.

While traditionally it was believed that shadow banking undercuts business from traditional commercial banks, the time has now arrived to examine the various innovative practices used by various shadow banks and non-banking finance companies (NBFCs) to explore various collaboration and competition possibilities. The parallel existence of the traditional and shadow banking systems creates a market environment where both the entities are inter-dependent for growth and development with their edge of advantages and snags. This study aims to investigate the development and growth of deposits in NBFCs and scheduled commercial banks (SCBs) and, through the adoption of innovative practices, highlights possible growth opportunities for both ahead.

This study uses yearly bank deposit data from 1998 to 2019. This study incorporates univariate autoregressive integrated moving average modeling to predict the future deposit growth of SCBs and NBFCs in India.

This study concludes that both the entities, i.e. NBFCs and SCBs, will experience deposit growth; however, the proportionate growth of deposits in SCBs will be higher than NBFCs.

This study concludes that the NBFCs will exhibit higher growth in the future. Thus, a strengthened regulatory framework will boost the growth of the NBFCs, providing a safe environment to the investor. Further, as this study primarily considers only deposit-taking NBFCs and commercial banks and a single variable – “deposit” to predict its future growth, it offers a scope for future research to consider and include other kinds of NBFCs like non-deposit taking NBFCs, housing finance companies, micro-finance Institutions and infrastructure finance companies.

A competently regulated financial system of an emerging economy confers tremendous growth opportunities to the financial institutions functioning in the system. Deposits are a significant parameter for the performance of the financial institution; thus, by keeping it as the underlying premise, this study forecasts the future growth in deposits for both the commercial banks and NBFCs. This forecasted growth in deposits for both entities, if analyzed and acted upon appropriately, can, apart from other opportunities for investment, be used to point at directional growth of the economy and the gross domestic product, considering that credit growth is a barometer for economic growth. The scope of this study is limited to NBFCs and SCBs of India and considers only a single variable, i.e. deposit for data analysis and growth forecasting.

The equation of unified knowledge says that S = f (A,P) which means that the practical solution to a given problem is a function of the existing, empirical, actual realities and the future, potential, best possible conditions of general stable equilibrium which both pure and practical reason, exhaustive in the Kantian sense, show as being within the realm of potential realities beyond any doubt. The first classical revolution in economic thinking, included in factor “P” of the equation, conceived the economic and financial problems in terms of a model of ideal conditions of stable equilibrium but neglected the full consideration of the existing, actual conditions. That is the main reason why, in the end, it failed. The second modern revolution, included in factor “A” of the equation, conceived the economic and financial problems in terms of the existing, actual conditions, usually in disequilibrium or unstable equilibrium (in case of stagnation) and neglected the sense of right direction expressed in factor “P” or the realization of general, stable equilibrium. That is the main reason why the modern revolution failed in the past and is failing in front of our eyes in the present. The equation of unified knowledge, perceived as a sui generis synthesis between classical and modern thinking has been applied rigorously and systematically in writing the enclosed American‐British economic, monetary, financial and social stabilization plans. In the final analysis, a new economic philosophy, based on a synthesis between classical and modern thinking, called here the new economics of unified knowledge, is applied to solve the malaise of the twentieth century which resulted from a confusion between thinking in terms of stable equilibrium on the one hand and disequilibrium or unstable equilibrium on the other.

The purpose of this paper is to indicate an innovative solution to address the financing issues faced by “Micro-, Small and Medium Enterprises” (MSME) in emerging economies.

Islamic Financial Institutions (IFIs) especially Islamic banks are competing for high net worth individuals, whereas the MSME sector is largely untapped. A collaborative model for IFIs is suggested, to explore the MSME sector. Islamic Non-Banking Financial Institutions (NBFIs) are operating in these markets through their extensive gross route networks. The multistep collaborative model proposes “Special Purpose Entity (SPE)” partially owned by a single Islamic Bank or consortium and NBFI/s. SPEs can be incorporated with a defined scope, focus areas, risk profile, budget and shareholding patterns.

Risk and profit sharing instruments also known as Musharakah and Mudarabah have less than 6 percent share within total financing offered by Islamic banks globally. Risk sharing products offered by Islamic banks are not targeting this sector due to the underdevelopment of instruments, lack of knowledge and resources. Proposed SPEs can operate regionally with a concentration on specific business sectors.

The SPE model would enable Islamic banks to enter the huge MSME market while mitigating risk. On the contrary, it would enable the large segments of emerging economies (bottom 40 percent population of developing nations) to get involved and actively play their role to attain long-term development goals.

The purpose of this study is to examine the relationship between regulation of non-bank financial institutions (NBFIs) and their performance in Ghana.

The analysis is performed using data derived from the Bank of Ghana Database during a five-year period, 2006-2010. Correlated panels corrected standard errors model is used to estimate the regression equation. Capital adequacy requirements and the restrictions on the ability of non-bank financial institutions (NBFIs) to take deposits are used as proxies for regulatory pressure. The study also used the return on assets (ROA) and return on equity (ROE) as measures of NBFI performance.

Results of the study emerged with the evidence that there exists a positive relationship between minimum capital adequacy requirement of 10 per cent and profitability. This indicates that asking NBFIs to keep higher minimum capital adequacy ratio has resulted in improving their profitability. This suggests that capital regulation is an effective tool in enhancing the stability and the profitability of the financial services sector. In addition, the paper finds a positive relationship between regulatory pressure in terms of restrictions on deposits and NBFI profitability. This means that non-deposit-taking NBFIs have improved performance. This indicates that restricting NBFIs in terms of deposit-taking rather goes to increase profitability.

The value of this study is in respect of its contribution to the extant literature on financial regulation and performance of NBFIs.

This paper analyses the relationship between financial sector development (FSD) and life insurance inclusion in India during the period from 1971–1972 to 2016–2017. The study analyses the effect of financial deepening on life insurance inclusion in India.

The study employs augmented Dickey–Fuller (ADF) unit roots test to check the stationarity properties of the time series data. It estimates a life insurance inclusion model using the auto-regressive distributed lag model (ARDL) bounds testing approach to cointegration.

The study finds evidence of a cointegrating relationship between financial deepening and life insurance inclusion in India. A significant error correction coefficient indicates automatic adjustments to short-run disequilibrium, reinforcing the cointegrating relationship between financial sector and life insurance inclusion.

A major limitation of the study is that it excludes the first-time sum assured (FSA) contributed by the private sector life insurance companies due to lack of data availability.

The results of the study call for faster expansion of the financial sector and provision of a low interest rate regime in the Indian economy. The study invokes the need for sufficient training to the personnel in the banking and non-banking institutions to cater to the complex needs of life insurance buyers.

The paper estimates the link between FSD and life insurance inclusion and introduces a new measure of life insurance demand, the life insurance inclusion, measured using the FSA.

The purpose of this paper is to assess the current legal framework on money laundering control in the insurance sector. Essentially, this examination is premised on the interrogation of whether it is still appropriate for Mauritius to apply such stringent, opaque and unyielding Anti-Money Laundering/Combating Financing of Terrorism norms and rules on general insurance when developed nations such as the UK and Singapore have done away with them for a more effective combat against money laundering. It would also be assessed why the financial services commission (FSC) is not able to draw inspiration from its British and Singaporean counterparts in fighting money laundering more effectively.

This paper uses the doctrinal legal research methodology which is colloquially described as “black-letter law” approach. It is backed up by a contextual legal analysis that is based on an analysis of relevant legal provisions. It relies ground experience from the insurance industry through the experience of the authors. A comparative approach is used with Singapore and the UK as case studies given that there are significant commonalities to the Mauritian jurisdiction as well as useful differences.

It is observed that a move towards a de-regulation of the legal framework on money laundering in the insurance sector with a more relaxed approach is more effective for the Mauritian insurance sector. Evidence is drawn from the Singaporean and British models. A re-structuring of the FSC of Mauritius is also warranted for such an approach to be adopted.

This paper is among the first academic contribution that proposes a de-regulation and the adoption of a relaxed approach of and by the Mauritian Insurance Industry for a more effective combat against money laundering. It serves as a legal foundational basis for further research in this direction.

The purpose of this study is to evaluate the effect of some internal features that influence the efficiency of non-bank financial institutions (NBFIs) in Bangladesh.

The study selected the top 15 Dhaka Stock Exchange (DSE)-listed NBFIs according to purposive sampling. The study period was from 2016 to 2020. Secondary data were collected from annual reports. The cost-to-income ratio was a dependent variable that was used as a proxy of operational efficiency. The ordinary least square regression technique was applied to measure the impact of firm-specific factors on efficiency.

Results showed that number of employees, branch number, firm size and deposit ratio have a significant effect on efficiency at 5% level. The number of branches and employees showed a negative impact, whereas firm size and deposit ratio showed a positive effect on the firms' efficiency. The deposit ratio is negatively related because deposit interest expenses were more than offset by interest income generation through the conversion of deposits into loans.

The study has practical and policy implications on NBFIs' managers, employees, shareholders, depositors, clients, regulatory authorities and government as efficiency enhancement would bring financial soundness.

This study shed light on some firm-specific factors that can be changed to increase operational efficiency or reduce the cost-to-income ratio. The novelty of the study is that it identified some significant associations between firm-specific factors and the operational efficiency of NBFIs.