Key Points
Mumbai: Risks emerging from the misuse of technology, challenges to transition to financing sectors that are fighting climate change and increasing geopolitical complexities are the three main worries dominating banking today, CEOs at top lenders said..
State Bank of India (SBI) chairman Dinesh Khara said it is clear that the climate risk is going to be much more pronounced and significant in the years ahead, but banks are facing challenges in funding green projects...
It will be good if regulations include some incentives like CRR (cash reserve ratio) cuts for raising green funds or risk weight reliefs for green financing," Khara said.. Cash Reserve Ratio (CRR) is the amount of deposits banks have to compulsorily set aside with the Reserve Bank of India without earning interest..
He cited the example of the ransomware attack on the world's largest lender by assets Industrial and Commercial Bank of China (ICBC) earlier this month which forced the bank to re-route trades using spreadsheets stored on portable drives and accessing the internet using dongles...
We also do not know of geopolitical risks and their impact because a nut from a car can come from a country which is in trouble and can cause a serious shutdown," Dave said.. IDFC First Bank CEO V Vaidyanathan said that banks have to learn to lend to new kinds of borrowers like dog groomers and beauticians who do not form part of their historical job classification..
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