Start learning 50% faster. Sign in now
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.
How do nonperforming assets (NPAs) impact a bank's balance sheet?
Who is the chairperson of Central Depository Services Ltd ?
BSE and National Stock Exchange have imposed a fine of Rs 5.36 lakh each on __________for not having the required number of independent directors includ...
Which feature distinguishes a current account from a savings account?
Which Indian bank became the first to open an all-digital branch, where no human beings are employed for regular operations?
The Reserve Bank of India has accorded approval to ICICI Prudential Asset Management Company Ltd (ICICI AMC) for acquiring up to 9.95 per cent stake in ...
Centre for Monitoring Indian Economy (CMIE) is an independent private limited entity that serves as an economic think-tank, It is headquartered in which...
In Which of the following year, the RBI Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting fr...
What is the projected value of India's bioeconomy by 2030?
Consider the following statements about Bonds:
1. Bonds are units of corporate debt issued by companies and securitized as tradable assets.
...