Reserve Bank of India Governor Shaktikanta Das has cautioned banks against any excessive mismatches in their asset-liabilities front, saying both are detrimental to financial stability, which is evident from the ongoing crisis in the US banking sector where two mid-sized banks went belly up last week.
The ongoing crisis in the US banking sector drives 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 up capital buffers for any unanticipated future stress, Das said.
#WATCH | Recent developments in US banking system have brought to the fore the criticality of banking sector…building up capital buffers for any unanticipated future stress…: RBI Governor Shaktikanta Das at the 17th KP Hormis Commemorative Lecture, Kochi pic.twitter.com/FOf4eEomKy
— ANI (@ANI) March 17, 2023
He was delivering the 17th KP Hormis (Federal Bank founder) commemorative lecture in Kochi this evening.