RBI Governor Warns Against Financial Complacency Amid Stable Growth
· Business · Indian Express, Times of India, LiveMint
Reserve Bank of India Governor Sanjay Malhotra stated on Saturday that India's financial system shows no imminent signs of stress but warned against complacency during prolonged periods of stability. Speaking at the Kautilya Economic Conclave in New Delhi, Malhotra noted that extended stability can encourage excessive risk-taking and leverage while fading memories of past financial crises. He recalled that cleaning up the legacy of excessive lending and non-performing assets from the early 2000s took over a decade, making current vigilance essential. Prime Minister's Principal Secretary PK Mishra also addressed the event, noting that the global economy confronts heightened uncertainty alongside supply shocks from the West Asia conflict.
Why it matters
The RBI Governor's warning signals to banks and financial institutions that regulatory vigilance will remain high to prevent the buildup of hidden leverage and non-performing assets.
Read the original report — Indian Express
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