Clients of non-bank consumer lenders are typically more prone than banks' clients to economic shocks because of their impaired credit histories/irregular income streams and are therefore more likely to be eligible for payment holidays;
Non-bank lenders typically do not have access to retail deposits or central bank facilities but depend on wholesale funding resources - which are sensitive to investor confidence and mostly closed to non-bank lenders amid the pandemic; and
The sector has been largely excluded from governments' emergency funding schemes.
