Answer-The Reserve Bank has released the Financial Stability Report (FSR), which reflects the collective as...

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The Reserve Bank has released the Financial Stability Report FSR, which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council FSDC on risks to financial stability and the resilience of the Indian financial system. Highlights  The global economy faces multiple challenges prospects of slowing growth large public debt increasing economic fragmentation and prolonging geopolitical conflicts  The Indian economy and the domestic financial system remain resilient, supported by strong macroeconomic fundamentals, healthy balance sheets of financial institutions, moderating inflation, improving external sector position and continuing fiscal consolidation.  The capital to risk-weighted assets ratio CRAR and the common equity tier 1 CET1 ratio of scheduled commercial banks SCBs stood at 16.8 per cent and 13.7 per cent, respectively, in September 2023.  SCBs gross non-performing assets GNPA ratio continued to decline to a multi-year low of 3.2 per cent and the net non-performing assets NNPA ratio to 0.8 per cent in September 2023.  Macro stress tests for credit risk reveal that SCBs would be able to comply with minimum capital requirements, with the system-level CRAR in September 2024 projected at 14.8 per cent, 13.5 per cent and 12.2 per cent, respectively, under baseline, medium and severe stress scenarios.  The resilience of the non-banking financial companies NBFCs sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets RoA at 2.9 per cent, respectively, in September 2023.

The Reserve Bank has released the Financial Stability Report (FS

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