Wednesday, March 22, 2023

India’s banking system remains stable, resilient: RBI Governor Shaktikanta Das – Usky News

MUMBAI: India’s banking system remains stable and resilient, and lenders have built up enough buffers to protect themselves from any unexpected stress, the Reserve Bank of India governor said on Friday amid recent turmoil in the sector globally. Said amidst the uproar.
“We conduct frequent stress tests. We identify potential build-up of risk in any institution and we continuously engage with the banks’ management through supervisors.” reserve Bank of India Governor Shaktikanta Das Said.
“Our job is to monitor and highlight emerging risks and challenges.”
Das’s comments came as bank stocks around the world tumbled amid fears of a global banking crisis, triggered by the collapse of two medium-sized US banks.
While authorities have shielded lenders on the sidelines, the turmoil has raised concerns about what may be lurking in the wider global financial system.
The turmoil has highlighted the severity of banking sector regulations, Das said, adding that the RBI’s off-site monitoring of Indian banks has become more frequent and rigorous over the years.
Das said the banking system is “well supervised and well regulated” and the RBI has consistently encouraged lenders to adopt robust risk management practices, conduct periodic stress tests and create adequate capital buffers.
He said that banks should also ensure that there is a steady growth in deposits and loans by assessing their asset-liability profile from time to time.
Das said it is also important for banks to properly examine interest rate related risks and more broadly focus on identifying the root cause of vulnerability rather than tackling symptoms alone.


- Advertisement -

More News

Latest NEWS

- Advertisement -