According to RBI’s Governor Shaktikanta Das, the Indian financial system remains completely shielded from the recent crises in the US and Switzerland. He stated that the banking system of the country is strong, robust, and resilient.
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Shaktikanta Das, governor of the Reserve Bank of India (RBI), stated that the Indian financial sector is still “completely” shielded from the recent crises in the US and Switzerland. He reaffirmed that the country’s banking sector is robust, stable, and healthy.
While highlighting the significance of financial and banking sector stability amid developments in the US and Switzerland, he added that the banking failures renewed a lot of attention.
He stated, “The parameters related to banking, whether it is capital adequacy, or it is the percentage of stressed assets or it is the liquidity coverage ratio of individual banks both at the individual level as well as at the systemic level or issues like provision coverage ratio, aspects like net interest margin of banks, the profitability of banks, whichever parameter you take into consideration, the Indian banking system continues to be very healthy.”
The RBI has significantly strengthened its monitoring and regulatory measures over the entire banking system, including non-banking financial institutions. The governor has mentioned that instead of waiting for a crisis to occur, the focus is on the early detection of any signs of vulnerability in the financial system.
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