Economic turbulence: Finance Minister asks banks to assess risk
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New Delhi: As turbulence brew across the global banking sector, Finance Minister Nirmala Sitharaman told state-run banks to assess various financial health parameters, Reuters report.
The minister said so in a statement after a meeting with the chiefs of state-run banks in New Delhi on Saturday. She said that lenders had been asked to identify stress points, including "concentration risks and adverse exposures".
Reuters reported that before the meeting, the Centre had sought details of the bond portfolios of said banks. The minister mandated that the banks must safeguard themselves from potential financial shock, the statement informed.
The S&P Global Ratings suggested this week that Indian lenders are capable of enduring any potential contagion effects emerging from the US banking turmoil.
According to the rating agency, strong funding profiles, high savings rates and government support are among the factors that bolster the financial institutions they rate.