FM Nirmala Sitharaman reviews PSU banks’ preparedness amid SVB and Credit Suisse collapse

Union Finance Minister Nirmala Sitharaman on March 25 chaired a meeting to review the preparedness of public sector banks in wake of the stress in banking systems in the US and Europe.

The review focused on PSBs preparedness along with due diligence through adherence to the regulatory framework by focusing on risk management, diversification of deposits and assets base.

During the review meeting, an open discussion was held with the MDs and CEOs of PSBs on the global scenario comprising the failure of the Silicon Valley Bank (SVB) and the Signature Bank (SB) along with issues leading to the crisis in Credit Suisse. Sitharaman reviewed the exposure of PSBs to this developing external global financial stress from both the short and the long-term perspectives.