Financial Stability Report

• Reserve Bank of India (RBI) released its Financial Stability Report
• The report 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.

MAJOR HIGHLIGHTS

• 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.
• Credit growth remains robust, and deposit growth has also gained momentum.
• Macro stress tests for credit risk showed that SCBs have sufficient capital buffers and even under adverse stress scenarios their capital ratios will remain above the regulatory minimum.
• Resilience of the non-banking financial companies (NBFCs) sector has

ABOUT FINANCIAL STABILITY AND DEVELOPMENT COUNCIL (FSDC)

• It was set up in 2010.
• Chairman- Finance Minister
• It aims to strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.