RBI’s Deputy Governor Swaminathan J highlighted the central bank’s efforts to build a robust data analytics ecosystem to enhance its supervisory functions. Speaking at the ‘High-level Policy Conference of Central Banks from the Global South,’ he stressed the importance of proactive and forward-looking supervision in a dynamic financial environment. He also outlined the evolving role of central banks in maintaining financial stability.

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• RBI is working towards creating a strong data analytics ecosystem to support its supervisory functions, says Deputy Governor Swaminathan.
• He spoke at the ‘High-level Policy Conference of Central Banks from the Global South’ last week.
• Swaminathan emphasized the need for proactive, continuous, and risk-focused supervision to ensure financial resilience.
• Central banks’ role in overseeing financial institutions has evolved over the last 50 years, Swaminathan noted.
• The concept of banking supervision is rooted in the core functions of central banking, starting from the role of the lender of last resort.
• Swaminathan stressed the importance of maintaining continuous, forward-looking risk assessments of individual banks.
• RBI aims to establish a global model of risk-focused supervision with strong risk discovery and compliance culture.
• The RBI is working on building a ‘through-the-cycle’ risk assessment framework.
• The central bank’s approach to supervision will remain agile to adapt to rapidly changing financial environments.
• Swaminathan reaffirmed the RBI’s commitment to a data-driven and dynamic supervisory model.