Poor biz models may have triggered crisis in US banks: RBI Governor Das

Governor Shaktikanta Das on Thursday said the Reserve Bank is having a closer look at domestic lenders' business models as it feels that poor strategies can trigger a crisis.

The Governor of the Indian central bank also said that the recent developments in the US, which has seen the implosion of lenders like Silicon Valley Bank and a rush to limit the contagion of stress across the system, may be because of poor business models.

He added that Indian banks have been able to stay resilient and have not been impacted adversely by the "recent sparks of financial instability seen in some advanced economies" courtesy the work done in this aspect by RBI and the banks themselves.

"The recent developments in the US raise a question whether the business model of individual banks that have faced challenges whether the business models were right," Das said.

"The RBI has started looking at the business models of banks more closely deficiencies (in it) can spark a crisis," Das said, speaking at