According to the report, the soundness and resilience of scheduled business banks are bolstered by strong capital buffers, multi-decadal low non-performing loans ratio and robust earnings. File | Photo Credit: Reuters
In its bi-annual Financial Stability Report (FSR), the Central Bank additionally mentioned elevated financial and commerce coverage uncertainties are testing the resilience of the worldwide economic system and the monetary system.
“Financial markets stay unstable, particularly core authorities bond markets, pushed by shifting coverage and geopolitical atmosphere. Alongside, current vulnerabilities equivalent to hovering public debt ranges and elevated asset valuations have the potential to amplify contemporary shocks,” the RBI mentioned.
Despite an unsure and difficult world financial backdrop, it mentioned the Indian economic system stays a key driver of world development, “underpinned by sound macroeconomic fundamentals and prudent macroeconomic insurance policies”.
“The home monetary system is exhibiting resilience fortified by wholesome stability sheets of banks and non-banks. Financial circumstances have eased supported by accommodative financial coverage and low volatility in monetary markets. The power of the company stability sheets additionally lends assist to general macroeconomic stability,” the RBI mentioned.
According to the report, the soundness and resilience of scheduled business banks (SCBs) are bolstered by strong capital buffers, multi-decadal low non-performing loans ratio and robust earnings.
Results of macro stress checks affirm that the majority SCBs have enough capital buffers relative to the regulatory minimal even below opposed stress eventualities. Stress checks additionally validate the resilience of mutual funds and clearing companies, it added.
Published – June 30, 2025 06:10 pm IST
