A meeting was held between the RBI governor and bank CEOs
The Governor in his remarks complimented the banks on their improved financial performance and that of the whole banking sector. While noting the resilience of the domestic financial system with healthy balance sheets of banks, he said banks should be cautious around this time
Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday met top bank CEOs in Mumbai and asked them to be vigilant about any build-up of risks in the sector. Speaking at an interaction, Das told the bank’s top officers that there is no scope for any complacency.
The Governor in his remarks complimented the banks on their improved financial performance and that of the whole banking sector. While noting the resilience of the domestic financial system with healthy balance sheets of banks, he said banks should be cautious around this time.
“While noting the resilience of the domestic financial system with healthy balance sheets of banks, he observed that there is no scope for any complacency and banks should continue to maintain their vigil around build-up of risks, if any,” the regulator said in a statement. Das complimented the banks on their improved financial performance and that of the whole banking sector.
Governor Das also mentioned the issue of high growth in personal loans, which has been an outlier among other categories. He also talked about banks’ exposure to non-banking finance companies. Worried over the growth of such loans, the RBI increased risk weights for unsecured loans and bank loans to NBFCs in November.
In today’s meeting, he also highlighted the issues relating to Business Model viability, adherence to co-lending guidelines, bank exposure to NBFC sector, liquidity risk management, IT and cyber security preparedness, operational resilience, digital frauds; and strengthening of the internal rating framework.
RBI regularly engages with the senior management of its regulated and supervised entities. Today’s meeting was attended by Deputy Governors M. Rajeshwar Rao and Swaminathan J, along with Executive Directors-in-Charge of Regulation and Supervision functions
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