Indian Banks Are Safe: RBI Gov Shaktikanta Das Amid US, Swiss Bank Crises
Indian financial system is “completely insulated” from the recent instability in the banking systems of several industrialised economies, Shaktikanta Das, Governor of the Reserve Bank of India (RBI) said.
“So far, India's banking system and financial system have been completely isolated from developments in the United States or Switzerland. Our banking system is resilient, stable, and healthy,” Das remarked following the second meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) conducted under India's Presidency.
“All banking parameters, whether it is capital adequacy or the percentage of stressed assets or the liquidity coverage ratio of individual banks — both at the individual and systemic levels...whichever parameter you take into consideration, the Indian banking system continues to be very healthy,” Das added.
The FMCBG meeting was co-chaired by Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das on the sidelines of the World Bank and International Monetary Fund spring meetings in Washington, DC. The conference was divided into three sessions: Global Economy and International Financial Architecture; Sustainable Finance, Financial Sector, and Financial Inclusion and International Taxation. Das went on to say that the RBI has greatly improved and tightened regulation and supervision of the whole banking sector, including non-banking financial companies (NBFCs), in recent years.
“Our focus of supervision is on early identification of any build-up of vulnerabilities. Rather than waiting for a crisis to develop, we seek out and identify early signals, and then nudge the bank to take necessary actions to mitigate any build-up of vulnerability in their working or in their finances,” he said.
