India says banking system sheltered from wider sector turmoil
2023.05.08 09:18
© Reuters. FILE PHOTO: India’s Economic Affairs Secretary Ajay Seth speaks during a news conference at the end of G20 finance ministers’ and Central Bank governors’ meeting on the outskirts of Bengaluru, India, February 25, 2023. REUTERS/Samuel Rajkumar
NEW DELHI (Reuters) – India’s Financial Stability and Development Council (FSDC) considers the country’s banking system to be protected from any spillover from issues in the sector globally, the country’s economic affairs secretary said on Monday.
Ajay Seth was speaking with reporters after the meeting of FSDC, which is chaired by the finance minister and brings together the leading regulators, including the country’s central bank.
“We see that the global financial situation is daunting but, at the same time, Indian economy and financial sector is well protected and well regulated. But of course we have to be cautious and be on our toes,” Seth said.
Asked whether the council, which was the first FSDC meeting since the 2023/24 Federal Budget was announced on Feb. 1, discussed India’s exposure to the Western financial system, he said it was not specifically discussed. However, whether spillover can occur and the channels of potential risks were debated.
