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Appropriate risk culture is need of hour, says RBI governor – Times of India

CHENNAI: Reserve Bank of India governor Shaktikanta Das, on Saturday, stressed appropriate risk culture is need of hour among all lenders.
Speaking at the 39th Palkhivala Memorial Lecture, he said banks and non-banking financial companies (NBFCs) need to strengthen the governance structure to ensure larger financial stability in the system.
He asked banks and NBFCs should evolve with changing technology and international best practices with regard to risk management. Besides, stressing on the government to draw a clear fiscal roadmap by the quality of its expenditure, while also highlighting the need for expenditure to focus on the multiplier effect.
He also mentioned that the central bank has taken all measures to help ease the impact of the pandemic on the economy.
Lenders must concentrate on a good governance quality and place much emphasis on changing business model, said Das.
“We are utilising data analytics at our offsite units to augment its ability of supervising financial entities. Such data analytics have equipped onsite supervisors to better deal with violations of norms, he said.
He also said both private and public sector banks need to fast-track their efforts to raise capital and take advantage of the benign financial conditions in order to walk the tight-rope of aiding the ongoing economic recovery while at the same time ensuring that their balance sheets remain healthy.
Finally, he added, the central bank is ready to do “whatever is necessary” to ensure financial stability.