Banks should be discouraged from undue risk: Rangarajan

Mumbai, June 17 (ANI): The Chairman of Prime Minister's Economic Advisory Council, C Rangarajan, on Thursday said banks should be discouraged from excessive risk taking to ensure a healthy financial system.

"There is no argument that the regulatory regime needs to be restructured. Excessive risk taking and leveraging by banks need to be discouraged by appropriate regulatory measures or controls," said Rangarajan at a seminar organised by the Skoch Foundation here.The regulatory regime should be re-structured to make the banking system more sound," he added.

Rangarajan also called for improvement in the country's corporate-bond market, asserting that it would help small companies to raise adequate funds. (ANI)