The world's banks have become safer since the global financial crisis but economic risks have spread elsewhere, Raghuram Rajan, the former governor of the Reserve Bank of India, told CNBC on Friday.
"Almost certainly lightening doesn't strike twice in the same place, probably because you take precaution," Rajan told CNBC's "Street Signs" in Singapore.
"Banks are in a much safer place than they were. The problem is the overall level of risk in the economy hasn't diminished considerably. If you make the banks safer, it has to go somewhere else," said Rajan, who is currently a professor of finance at the University of Chicago Booth School of Business.
Rajan said that there were aspects of the shadow financial system that were now "a little more worrying," particularly the high default rate on U.S. student loans.