Today’s resilience no guarantee for tomorrow: RBI Guv flags emerging financial risks
RBI Governor Sanjay Malhotra warned that current financial resilience does not guarantee future immunity against systemic risks. He emphasized the need for better data and scenario analysis to manage interconnected threats like cyberattacks and geopolitical instability.
Why it matters
As financial systems become more globalized and digitized, traditional risk management must evolve to address non-financial systemic shocks.
Reserve Bank governor Sanjay Malhotra on Saturday said that the central bank remains committed to monitoring emerging vulnerabilities and maintaining a strong and resilient financial system, even as the financial sector remains resilient with healthy balance sheets of banks and NBFCs."Today's resilience may not necessarily imply tomorrow's immunity, and we are committed to remain vigilant of emerging vulnerabilities and continue to keep our financial system strong and resilient," he said while speaking at the Kautilya Economic Conclave here.Malhotra outlined five priorities for policymakers and said the approach to financial stability should be centred on making the system capable of withstanding and containing the impact of shocks, rather than focusing on preventing them.
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