Reserve Bank Governor Shaktikanta Das highlighted that despite increased global uncertainties and formidable challenges, the Indian economy has achieved a strong recovery and is one of the fastest-growing major economies. This growth is attributed to sustained bank credit, low non-performing assets, and sufficient capital and liquidity buffers.
To ensure financial stability amid unforeseen challenges, Das mentioned the efforts being made by the Reserve Bank and other financial regulators. He stressed the importance of policymakers worldwide maintaining a delicate balance of policy trade-offs, supporting macroeconomic and financial stability, instilling confidence, and fostering sustainable growth.
Das expressed concern about the economic fragmentation threat to macroeconomic prospects, especially among emerging markets and developing economies, caused by successive shocks like the COVID-19 pandemic, geopolitical tensions, monetary policy adjustments, and banking turmoil.
In light of recent banking challenges in advanced economies, Das emphasized the need to reassess global standards for financial sector regulations. He highlighted the significance of international cooperation among regulators and unwavering commitment from regulators and regulated entities in India to maintain a stable financial system.
