Governance premium to rise sharply, banks to be put through the wringer

In European banks, you have a supervisory board for governance, another for management of business

“We are dedicated to establishing a global model of risk-focused supervision, one that emphasises strong risk discovery and compliance culture,” said Reserve Bank of India (RBI) Deputy Governor Swaminathan J. He was speaking at the ‘High-Level Policy Conference of Central Banks From the Global South’ in Mumbai last week. And the statement was taken by a few bankers to mean that Mint Road’s senior supervisory managers will proactively keep digging for signs of mess in the banks they are assigned to.

 

Swaminathan’s portfolio includes the powerful Department of Supervision, and the RBI may well have signalled it is set to