The recent developments in the United States banking system have brought to the fore the criticality of banking sector regulation and supervision. These developments in the United States, especially, over the last week and thereafter, drive home the importance of ensuring prudent asset liability management.
They also point out that cryptocurrencies, assets, and the like can be a real danger to banks. whether directly or indirectly, developments in the United States banking system have brought to the fore the criticality of banking sector regulation and supervision.
These are areas that have a significant bearing on maintaining any country’s financial stability, and particularly these developments in the US, particularly over the past week. and thereafter drive home the importance of ensuring prudent asset liability management, robust risk management, sustainably able growth in liabilities and assets, undertaking periodic stress tests, and building up critical buffers for any unanticipated future stress.
Now, more specifically, these developments in the banking system of the United States drive home the importance of ensuring, number one, prudent asset liability management, robust risk management, and sustainable growth in liabilities in assets, which means sustainable growth of deposits as well as sustainable growth of credit. Second point: undertaking periodic stress tests and building of capital buffers or any unanticipated stress. They also bring out that cryptocurrencies, assets, and the like can be a real danger to banks, whether directly or indirectly.
