RBI governor warns against complacency amid external headwinds (opens the source in a new tab)
- Sanjay Malhotra called India’s financial system “very resilient”, but said long spells of stability encourage risk-taking and leverage.
- He flagged high global debt, stretched AI valuations, leverage outside banks and Private credit Loans made by investment funds instead of banks, usually less regulated and less visible., with AI-driven cyber risk the most immediate.
- The US 10-year Treasury touched a 24-year high of 5.34% on Thursday; India’s Bond yield The annual return a bond pays at today's price; rising yields mean borrowing is getting dearer. have risen more slowly than peers’.
- 5.34%
- US 10-yr, 24-yr high
- 5
- global risks flagged
- 4
- priorities set out
Why it matters Calm periods are when banks take the risks that hurt later.
Other side He sees no imminent stress, and says an AI-valuation correction abroad could even send capital to India. Warning, or routine caution?
Source:Mint (free to read) ↗