In his foreword to the bi-annual Financial Stability Report (FSR), Das said the top priority right now for banks and financial intermediaries should be for augmenting capital levels and improve resilience.
Reserve Bank of India Governor Shaktikanta Das on July 24 said the country's financial system is sound and although lenders should be risk-averse, extreme risk aversion could prove harmful
In his foreword to the bi-annual Financial Stability Report (FSR), Das said the top priority right now for banks and financial intermediaries should be for augmenting capital levels and improve resilience.
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"In the evolving milieu, while risk management has to be prudent, extreme risk aversion would have adverse outcomes for all," Das said.
The financial system in India remains sound; nonetheless, in the current environment, the need for financial intermediaries to proactively augment capital and improve their resilience has acquired top priority, he added.
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