Feasibility of a Separate Financial Architecture for Small Business Financing

Experts believe the creation of a separate category for funding of non-corporate small businesses called "Small Business Finance Companies" might be the best solution. These finance companies need to have a separate identity along with a different set of rules and regulations. They should be free from Basel and other stringent banking norms, keeping in consideration the social and economic role that they would play in financing small businesses, which banks may not be suited to do.