Banking investments

New norms will impart stability

A stable banking system is an absolute necessity for maintaining financial stability. It is thus important that banks are properly regulated and do not take unnecessary risks. While the quality of lending in the banking system and the level of bad loans often attract public attention, it is also important for the regulator to keep a close eye on the investment portfolio. The Reserve Bank of India (RBI) on Tuesday in this context released revised investment norms for the banking sector. It is worth noting that the recent run on banks in the US was partly a consequence of inadequate