Centre's ownership of banks cuts 'lender of last...

added a post in Business

2025-05-25 19:28:08 -

Centre's ownership of banks cuts 'lender of last resort' risk for RBI

RBI acknowledges that government ownership of public sector banks (PSBs) reduces its risk management burden, justifying lower capital buffers for these entities. The central bank's economic capital framework report highlights the government's deep pockets and track record of capital infusion, which has improved PSB asset quality.

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