India’s financial system remains “completely” insulated from recent events in the US and Switzerland, RBI Governor Shaktikanta Das said, saying the country’s banking system is resilient, stable and healthy.
The Governor of the Reserve Bank of India (RBI) told a press conference here on Thursday that globally, recent developments in the banking system in the US and in Switzerland have once again highlighted the importance of financial stability. and the stability of the banking sector.
He was here for the annual spring meeting of the International Monetary Fund and the World Bank along with Union Finance Minister Nirmala Sitharaman.
Responding to a question about the collapse of the Silicon Valley Bank, he said that the events related to bank failures in the US and also in Switzerland have naturally renewed a lot of interest.
“As far as India is concerned, the Indian banking system, the Indian financial system, remains completely insulated from developments that have taken place in the US or in Switzerland. Our banking system is resilient, stable and healthy,” Das said.
“Banking-related parameters, whether it’s capital adequacy, or the percentage of stressed assets or the liquidity coverage ratio of individual banks both at the individual level and at the systemic level or issues like the coverage ratio of provisions, things like banks’ net interest margin, banks’ profitability, whichever parameter you look at, the Indian banking system is still very healthy,” he said.
Das said that as far as the Reserve Bank of India is concerned, in recent years, “we have significantly improved and tightened our regulation and supervision of the entire banking system, including non-bank finance companies.”
The focus of supervision is on early identification of any buildup of vulnerabilities and not waiting for the crisis to build up, the RBI governor said.
