The key to long term financial stability would be to foster tangible improvement in the inherent ability of the banks to withstand the exogenous shocks like the current pandemic, Reserve Bank of India (RBI) Governor Shaktikanta Das said in his keynote address at the virtual Business Standard conclave Unlock BFSI 2.0. He was speaking on the theme “It is Time for Banks to Look Deeply Within: Reorienting Banking Post-Covid”.

Elaborating further, he said the causes of weak banks can be traced to three factors: “an inappropriate business model given the business environment; quality or the lack of governance and decision making; misalignment of internal incentive structures with external shareholder/stakeholder interests.”

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