US banking crisis is not threat for India’s financial sector: RBI Governor

The Indian banking system remains remarkably resilient and stable despite the banking crisis that has been unfolding in the US, said Reserve bank of India Governor Shaktikanta Das. He was delivering the K.P. Hormis Commemorative Lecture, organised by the Federal Bank in Kochi. Das was referring to the Silicon Valley Bank, the biggest failure of a US bank since the global financial crisis, and then Signature Bank and First Republic Bank.

The recent developments in the banking sector in the US have brought to fore the criticality of banking sector regulations and supervision, he said. The developments drive home the importance of ensuring prudent asset liability management, robust risk management and sustainable growth in liabilities and assets, undertaking periodic stress tests, and building adequate capital buffers to face any unanticipated stress.

Das said sharing our experience with G20 nations could open up scope for collaboration in pursuit of the common goal of a brighter global economy. “Since India will remain as one of the world’s fastest-growing economies, our energy needs are also expected to go up considerably. Therefore, accelerating growth in renewable energy capacity and reducing dependence on fossil fuel should be our priority,” he said.