Consider the following statements about ‘Financial

Solution

Global Financial Stability Report is published by the International Monitory Fund (IMF) Statement I is not correct - The Reserve Bank of India releases the Financial Stability Report (FSR). The FSRs are periodic exercises for reviewing the nature, magnitude and implications of risks that may have a bearing on the macroeconomic environment, financial institutions, markets and infrastructure. Statement II is correct - FSR estimates that banks’ bad loans may fall further to 5.3 per cent by March 2023. If the macroeconomic environment worsens, bad loans may rise to 6.2 per cent in a medium stress scenario, deteriorating to 8.3 per cent in a severe stress scenario. Statement III is correct - Financial Stability Report (FSR) is a biannual publication.