{"id":86404,"date":"2019-12-28T15:32:36","date_gmt":"2019-12-28T10:02:36","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=12587"},"modified":"2019-12-28T15:32:36","modified_gmt":"2019-12-28T10:02:36","slug":"financial-system-stable-despite-slowdownrbi-report","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/financial-system-stable-despite-slowdownrbi-report\/","title":{"rendered":"Financial system stable despite slowdown:RBI report"},"content":{"rendered":"\n<p><strong>News:<\/strong>The Reserve Bank of India has released its biannual Financial Stability Report,2019.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>About Financial Stability Report:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Financial Stability Report are bi-annual reports published by the Reserve Bank of India(RBI).<\/li><li>The report is the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability.<\/li><li>It reviews the nature, magnitude and implications of risks that may have a bearing on the macroeconomic environment, financial institutions, markets and infrastructure.<\/li><\/ul>\n\n\n\n<p><strong>Key takeaways from the report:<\/strong><br><\/p>\n\n\n\n<p><strong>On India\u2019s Economic Growth:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Reserve Bank has said that the country&#8217;s financial system remains stable despite slowing economic growth.&nbsp;<\/li><li>The aggregate demand has slowed down in the second half of the current financial year ending March 2020 adding to an already slowing economic growth.<\/li><li>The Global factors such as a delay in Brexit deal, trade tensions, impending recession, oil-market disruptions and geopolitical risks has caused uncertainties leading to a significant deceleration in growth.<\/li><li>The reviving of the twin engines of India\u2019s economic growth namely private consumption and investment while being vigilant about developments in global financial markets remain a critical challenge for RBI.<\/li><\/ul>\n\n\n\n<p><strong>On Banking Sector:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Banks capital adequacy ratio has improved significantly after the recapitalisation of public sector banks(PSBs) by the government.&nbsp;<\/li><li>Insolvency and Bankruptcy Code (IBC) has tackled the issue of bad loans which had slowed down the performance and growth of private, public-sector banks and even non-banks.<\/li><li>RBI has also taken several policy measures to improve the condition of the financial system such as (a)introducing a liquidity management regime for NBFCs (b)improving the banks\u2019 governance culture (c)resolution of stressed assets and (d)for the development of payment infrastructure.<\/li><li>However,RBI expects the banks gross non-performing asset(GNPA) ratio to increase from 9.3% in September 2019 to 9.9% by September 2020.<\/li><li>This is primarily due to change in macroeconomic scenario, marginal increase in slippages and the denominator effect of declining credit growth.<\/li><li>Further,the frauds reported by the banks touched an all time high of around Rs 1.13 lakhs in the FY19.The frauds reported between 2001-18 accounted to 90% of the frauds registered in 2019 alone.<\/li><\/ul>\n\n\n\n<p><strong>Additional information:<\/strong><br><\/p>\n\n\n\n<p><strong>About Capital Adequacy Ratio(CAR):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Capital Adequacy Ratio(CAR) is the ratio of a bank\u2019s capital in relation to its risk weighted assets and current liabilities.&nbsp;<\/li><li>It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.<\/li><li>The risk weighted assets take into account (a)credit risk (b)market risk and (c)operational risk while deciding Capital Adequacy Ratio(CAR).<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The Reserve Bank of India has released its biannual Financial Stability Report,2019. Facts: About Financial Stability Report: The Financial Stability Report are bi-annual reports published by the Reserve Bank of India(RBI). The report is the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability. It reviews&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/financial-system-stable-despite-slowdownrbi-report\/\">Continue reading <span class=\"screen-reader-text\">Financial system stable despite slowdown:RBI report<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3615,394],"class_list":["post-86404","post","type-post","status-publish","format-standard","hentry","category-economy","tag-financial-stability-report","tag-rbi","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704800188},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86404"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86404\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}