RBI’s Risk Warning: Financial Shocks May Start Outside Finance

RBI Governor Sanjay Malhotra flagged five financial-stability vulnerabilities, including global debt, high leverage, private credit, stretched asset valuations and cyber risks linked to AI. The warning shifts attention beyond bank balance sheets: pressures elsewhere can still find their way into the financial system.

The Risk Map

• Shocks from outside finance: Malhotra said geopolitical events, cyberattacks or technology failures could affect the financial...