Banks must do proper risk assessment before investing in bonds, says Shaktikanta Das while referring to Silicon Valley Bank collapse Amid US banks’ crisis, Reserve Bank of India Governor Shaktikanta Das on Friday said Indian banking system remains stable, resilient. At the 17th K P Hormis Commemorative Lecture, Das said US banks’ crisis shows “need for prudent asset liability management”.
Banks must do proper risk assessment before investing in bonds, said Das while referring to Silicon Valley Bank collapse.
India’s total external debt is within manageable levels, he said. RBI has been constantly engaging with banks and has nudged them to adopt robust risk management practices, conduct periodic stress tests and build sufficient capital buffers, Das said.
Bank stocks across the world have tumbled amid fears of a widespread banking crisis in United States and Europe. “Our financial sector is stable. worst of inflation behind us. Our external debt is manageable, so dollar rise does not pose any problem to us,” said Das. RBI Governor called for coordinated attempts by G20 countries to help countries with high external debt risks due to dollar rise.
