iBanks should focus on long-term perspective

Advising the banks to keep long- term perspective in mind and not get carried away by the recent developments, the Reserve Bank has said the recent steps taken by it are in response to a particular situation. "While the temporary counter-cyclical measures taken by the RBI are as per the need of the hour, it has to be borne in mind that the measures are ad-hoc in nature in response to a particular situation," RBI Deputy Governor V Leeladhar said at a meeting here at the Bankers' Club. He said banks would be well advised to ensure that their business strategies and decision are guided by the longer-term perspective of the systemic and macro economic developments and are not unduly influenced by the current episode of exceptional events. "Since the banks would have a key role in successfully countering the adverse impact of the recent developments, their continued safety and soundness and financial health would be of utmost importance-- for the banks, for their customers as well as for the public policy authorities from a systemic perspective." He also asked banks to make concerted efforts to capture 100 per cent data, including off balance sheet from their branches in a timely manner.