Challenge before us is to build a financial system that can withstand the shocks we anticipate and those we cannot yet foresee, says RBI Guv
Mumbai, Oct. 5 -- Reserve Bank Governor Sanjay Malhotra lays down five key priorities that policymakers must factor in when safeguarding financial stability. Acknowledging that some shocks will be inevitable, he said that financial stability is not about preventing them. It is about strengthening systemic resilience to face those shocks and contain their amplification. Shocks may be endogenous or exogenous. Our aim must be to foster a financial system that can provide financial services in all states of the world, even under severe shocks. Secondly, a new generation of systemic risks is taking shape, RBI Guv stated and that assessing them and their complex interactions is vital. Risks are increasingly exogenous, cross-border and interconn...
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