Central banks in Brazil and India have issued warnings regarding financial stability amidst rising interest rates, increased defaults, and concerns over unsecured lending. Brazil's Central Bank's Financial Stability Committee (Comef) highlighted the need for caution in credit issuance due to high interest rates, family income constraints, and corporate indebtedness. The committee noted a potential deterioration in credit conditions, as indicated by its quarterly survey, and urged financial institutions to maintain prudent capital and liquidity management. Brazil's Selic rate currently stands at 13.25%, with projections of an increase to 14.25% in March. Meanwhile, in India, Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao raised alarms about excessive borrowing in unsecured loans and speculative activities in derivatives markets. Rao emphasized the importance of financial literacy and warned against 'reckless financialisation,' urging financial entities to ensure customers understand the risks associated with leveraged products. He also highlighted the challenge of balancing regulation to foster stability and innovation. The RBI's unified lending interface has facilitated loans worth Rs 27,000 crore, showcasing its role in financial inclusion. Both central banks underscored the need for balanced regulation to mitigate risks while fostering financial stability.