ContextInaugural address by Shaktikanta Das, Governor of the Reserve Bank of India, at the conference of Directors of Banks, organised by the Reserve Bank of India for Public Sector Banks on 22 May 2023 in New Delhi and Private Sector Banks on 29 May 2023 in Mumbai.
Why it mattersDas links bank governance to stability after foreign bank failures.
Problems raised
Banks faced stress from the pandemic, war and foreign bank crises.
Governance weaknesses can threaten stability.
Sustainable growth needs sound banks.
Solutions proposed
Strengthen governance in banks.
Maintain strong capital and asset quality.
Promote a culture of compliance and risk management.
