RBI Governor Shaktikanta Das on banking supervision: ‘Need to see stress before it builds up’

Governor Das expresses concerns about global banking 'supervisors' lagging behind economic cycles.

Written By Vaamanaa Sethi
First Published20 Jun 2024, 04:51 PM IST
RBI Governor Shaktikanta Das highlighted the importance of maintaining vigilance in the banking sector.
RBI Governor Shaktikanta Das highlighted the importance of maintaining vigilance in the banking sector.

Reserve Bank Governor Shaktikanta Das, in a speech at the second global conference on financial resilience organised by the College of Supervisors in Mumbai on Thursday, highlighted the importance of maintaining constant vigilance in the banking sector.

Speaking at the event, Governor Das brought attention to past instances of significant banking failures worldwide. He addressed the crisis in the United States following the collapse of First Republic and Silicon Valley Bank in 2023. The central bank governor also referenced the downfall of the Swiss giant Credit Suisse, which UBS, another major Swiss bank, subsequently acquired.

Also Read | Reserve Bank of India wins risk manager of the year award 2024

Expressing concerns about global 'supervisors' lagging behind economic cycles, the central bank governor emphasised the critical need for enhanced supervision, particularly in detecting the early signs of crises and deploying effective mechanisms to prevent them.

He said that timely measures on unsecured loans have slowed down their growth. “We thought it is better to act in advance and slow down the credit growth in these segments," Das was quoted as saying by the Hindustan Times.

Regarding supervision, the RBI governor stressed the need to anticipate the development of a crisis and take timely action. “It is our endeavour to smell a crisis. Supervision has become a very complex task," he added.

Also Read | RBI completes special audit of IIFL Finance to address regulatory concerns

The RBI governor also added that the Indian financial system is now in a significantly stronger position than it was during the Covid-19 pandemic.

“We need to realise it is a complex world, and our supervisory methods should be our best endeavour to remain in sync with time. Not only in sync with times but to see stress before it builds up,” Das said.

 

 

 

 

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:20 Jun 2024, 04:51 PM IST
HomeIndustryBankingRBI Governor Shaktikanta Das on banking supervision: ‘Need to see stress before it builds up’

Most Active Stocks

Bharat Electronics

313.40
10:55 AM | 18 JUL 2024
-12.95 (-3.97%)

Zee Entertainment Enterprises

143.10
10:55 AM | 18 JUL 2024
-12.35 (-7.94%)

Oil & Natural Gas Corporation

328.55
10:55 AM | 18 JUL 2024
6.15 (1.91%)

Tata Steel

165.10
10:55 AM | 18 JUL 2024
-1.95 (-1.17%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Tata Teleservices Maharashtra

86.90
10:46 AM | 18 JUL 2024
5.57 (6.85%)

IDBI Bank

93.32
10:46 AM | 18 JUL 2024
5.4 (6.14%)

India Cements

341.75
10:46 AM | 18 JUL 2024
18.7 (5.79%)

Emami

808.40
10:46 AM | 18 JUL 2024
35.3 (4.57%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    75,099.00-147.00
    Chennai
    74,659.00-440.00
    Delhi
    74,512.00-294.00
    Kolkata
    75,539.0073.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumMint Shorts