'Banks should be cautious of technological risks', says N S Vishwanathan

'AQR facilitated RBI to understand how a borrower behaved across the banking system'

At a time when the health of the Indian banking system seems robust, N S Vishwanathan, former deputy governor, Reserve Bank of India (RBI) and Chairperson of College of Supervisors, cautioned bankers from celebrating too early while also calling for the need to sustain the current performance. Edited excerpts from his Fireside chat with Business Standard Consulting Editor Tamal Bandyopadhyay:

Do we need to take cognition of what’s happening in the US and can it impact us?
 

In the banking system, the time for liquidity risk to become a solvency risk is very little, it’s too quick, the serviceability liquid