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Unlock BFSI 2.0: Banks' extreme risk aversion self-defeating, says RBI Guv

What is desirable is focus on governance, focus on risk management, focus on quality of decision making and building up resilience, according to RBI Governor Shaktikanta Das

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We have not exhausted our policy options, whether (on) rate cuts or any other aspect of central banking, said Shaktikanta Das

Anup Roy Mumbai

5 min read Last Updated : Aug 28 2020 | 7:19 AM IST

Banks must shed their extreme risk aversion and focus more on risk management and the quality of decision making to remain resilient in a challenging financial environment, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday in his keynote address at the virtual Business Standard conclave Unlock BFSI 2.0.

“Remaining overly risk-averse may seem to be a measure of self-immunisation; but will be self-defeating as it would affect the bottom line adversely,” the governor said.

Among the causes of weakness in banks are an inappropriate business model, given the business environment; quality or the lack of governance and

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