Indian banking system is stable, resilient: RBI guy

Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday that the country’s banking system continued to be resilient and stable, and the central bank had been engaging with domestic lenders on all fronts for the last few years to prepare them for any future risks. His remarks came against the backdrop of the collapse of three banks in the US.

Das said recent developments in the US banking system had brought to the fore the criticality of banking sector regulations and supervision. “These are areas which have a significant impact on preserving the financial stability of every country,” he said while delivering the K P Hormis Comm–emorative Lecture in Kochi. “I am happy to report that the way the Indian banking system has evolved and the way it is positioned today, it continues to be resilient and stable.”

He said the US banking crisis “drives home the importance of prudent asset-liability management, robust risk management and sustainable growth in liabilities and assets, undertaking periodic stress tests and building up periodic buffers for any unanticipated future stress”. This also underlined that cryptocurrencies or assets could be a real danger to banks, whether directly or indirectly, he added.