Rbi: Impact of US, European bank crisis in India limited, ‘our financial system safe’: Ex-RBI governor Subbarao


HYDERABAD: The probability of a knock-on impact of the ongoing banking crisis in the United States and Europe in India is quite limited because our banks and financial system are safe, former Reserve Bank of India (RBI) governor Duvvuri Subbarao said here on Saturday.
“The retail deposit base of our banks is quite diversified. Credit quality is good. There is enough liquidity. Our banks, in particular, have SLR (statutory liquidity ratio) requirement which is another safety buffer. We have to be careful and watchful but the probability of a knock-on impact like (what) happened during the global financial crisis of 2008-09 is quite limited,” he said.
He also said he sees no likelihood of a repeat of the 2013 taper tantrums, when foreign institutional investors pulled money out from equities and bonds leading to the Rupee depreciating 15% between May 22 and August 30, 2013, forcing…

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