’We have not exhausted our ammunition yet,’ assures RBI Guv Das
- We have not exhausted our ammunition, whether on rate cuts or other policy actions: RBI chief Das
- Extreme risk aversion can be self-defeating, banks will not be able to win their bread: Guv Das
RBI Governor Shaktikanta Das on Thursday cautioned banks that being extreme risk averse will be "self-defeating" and that lenders will not be able to “win their bread” if they do not carry out their basic task. Governor Das also added that India's banking sector needs reforms in terms of governance culture and risk management practices.
Speaking at a webinar organised by a financial daily, Das said, rather than becoming averse to lending, banks have to improve their risk management and governance frameworks, and also build sufficient resilience.
RBI Governor Shaktikanta Das: Here's what he said
- We have not exhausted our ammunition, whether on rate cuts or other policy actions
- Extreme risk aversion can be self-defeating, banks will not be able to win their bread.
- Government response to pandemic has been fiscally very responsible, prudent and very calibrated.
- Once there is clarity on COVID-19 curve and other aspects, RBI will start giving its estimates on inflation and growth.
- To say that banks will face stress is stating the obvious; what is more important is how banks react and respond to the challenge.
- There is considerable room for improvement in banks to avoid frauds.
- Being overly risk-averse is self-defeating for banks.
- By no sense should it be assumed that RBI will unwind the measures soon.
- Post containment of pandemic, careful trajectory needs to be followed for unwinding; financial sector should return to normalcy.
- Debt resolution framework is expected to give durable relief to borrowers facing COVID-related distress.
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First Published:27 Aug 2020, 12:06 PM IST
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