Guest Lecture on Financial Intermediaries
On November 13th, 2024, the School of Commerce, Finance & Accountancy at CHRIST (Deemed to be University), Pune Lavasa Campus, hosted an insightful guest lecture on Financial Intermediaries focusing on Non-banking financial intermediaries. The event was part of the university’s ongoing commitment to enhancing students’ knowledge in finance and analytics, reinforcing its reputation as "The Hub of Analytics”.
The guest lecture series was conducted online via Google Meet by Dr. Nandita Bhattacharjee, Assistant Professor in the Department of Commerce at Birla Global University, Bhubaneshwar. The session was held in Room No. 2225, Management Block, and was attended by first-year M.Sc. Global Financial Analytics students as part of their MGF132L: Global Financial Markets course curriculum.
Dr. Bhattacharjee commenced the session with a detailed exploration of the significance of Non-Banking Financial Intermediaries in today’s evolving financial ecosystem. She explained how NBFIs have emerged as crucial players by bridging gaps in financial services, fostering economic growth, and promoting financial inclusion, particularly for underserved sectors. She emphasised their global impact, describing how these institutions provide credit, investment opportunities, and liquidity support, thereby contributing to the development of economies worldwide. However, Dr. Bhattacharjee also highlighted the inherent systemic risks associated with NBFIs, such as susceptibility to liquidity crises and contagion effects, underscoring the importance of robust regulatory frameworks to ensure financial stability.
The session also delved into key aspects of shadow banking, a significant component of NBFIs. Dr. Bhattacharjee discussed how shadow banks operate outside the regular banking system, engaging in activities like asset securitization and credit intermediation. She elaborated on their rapid growth, especially in emerging markets, where they play a pivotal role in financial inclusion and innovation by serving unbanked sectors and introducing new financial products.
The lecture covered topics such as the cross-border interconnectedness of shadow banking, which creates vulnerabilities by exposing these institutions to global financial risks and shocks. Dr. Bhattacharjee highlighted their interconnected role in transferring financial shocks across regions, particularly noting North America’s influence as a hub for shadow banking activities. She also examined future trends, including the rise of FinTech, digital lending, and sustainable finance, which are shaping the shadow banking and NBFI landscape.
Additionally, Dr. Bhattacharjee outlined the advantages and challenges of shadow banks in emerging markets, including their contributions to economic growth through innovative financing and competition. However, the session did not shy away from discussing their potential risks, including higher exposure to financial instability. These insights were complemented by practical examples of how NBFIs align with global financial systems to balance innovation with stability.
The lecture concluded with an interactive Q&A session, where students actively engaged by asking questions and sharing their views. Dr. Bhattacharjee responded with practical examples, deepening students’ understanding and sparking a lively discussion.Overall, the guest lecture provided a comprehensive overview of Non-Banking Financial Intermediaries and their evolving role in the global financial system. It offered students valuable knowledge and real-world insights, equipping them with skills relevant to their academic pursuits and future careers in finance. Events like this continue to strengthen CHRIST University’s commitment to excellence in finance education and analytics.
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