Reserve Bank's close look at the business models of the country's financial institutions: Das

Mumbai: Reserve Bank is keeping a close eye on the business models of banks in the country, RBI Governor Shaktikanta Das said. Indian banks are able to withstand stress, recent stress tests showed.

Even under severe stress, banks can maintain capital adequacy higher than the minimum requirement, he said while addressing a global conference on financial resilience.

The Reserve Bank has put in place various mechanisms to monitor banks and measures to assess the level of risk in the financial system.

Referring to the recent banking crisis in America and Europe, Das said that banks and other financial institutions need to be organizationally resilient. Organizations must be able to protect against adverse events.

The Reserve Bank expects banks and financial institutions to continuously assess the financial risks they face, Das added. He also said that Indian banks have been safe from recent global adverse events.