RBI Governor Emphasizes Governance Amid Strengthening Financial System

Reserve Bank Governor Shaktikanta Das highlights the importance of governance within the financial system. He emphasizes the strengthened balance sheets, robust earnings, and strong buffers of financial institutions. Das underscores the need for investment in technology and calls for safeguarding customers' interests amid global economic challenges.

In a detailed address on Thursday, Reserve Bank Governor Shaktikanta Das emphasized the crucial role of governance in the financial system. He urged stakeholders to prioritize strong governance, which he identified as the core of financial resilience.

According to Das, financial institutions are currently showing gains in asset quality, with low levels of impairments and robust earnings. He pointed out that RBI stress tests reveal that banks' and non-banking financial companies' buffers will remain above minimum regulatory capital levels, even under severe stress scenarios.

Das also warned of emerging risks, including cyber threats, climate change, and global spillovers, urging banks to invest adequately in technology. In addition, he highlighted the importance of placing customers' interests at the forefront to preserve trust and systemic stability.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)