RBI is working towards creating a robust data analytics ecosystem to support its supervisory functions, ensuring that the approach remains forward-looking and agile in a rapidly changing world, central bank's Deputy Governor Swaminathan J has said.
Addressing 'High-level Policy Conference of Central Banks from the Global South' here last week, he said the supervision of banks and financial institutions is a relatively recent development - dating back around 50 years.
However, the concept of overseeing banks is embedded in the very foundations of central banking.
From the early days, central banks have fulfilled their role as the lender of last resort, ensuring that financial institutions remained solvent and protected against systemic crises, Swaminathan said.
The senior RBI official further said that to build financial resilience, supervision must be proactive, continuous, forward-looking and risk-focused.
An effective banking supervision system requires the supervisor to maintai