|
RBI Financial Stability Report: India's Macro Fundamentals Strong, All Key Indicators in Positive Zone
The Reserve Bank of India's December 2024 Financial Stability Report shows that the Indian financial system is resilient. Scheduled commercial banks exhibit strong profitability and declining non-performing assets. Non-banking financial companies have healthy capital buffers and good earnings. The insurance sector maintains a robust solvency ratio. Despite global risks, India's macroeconomic fundamentals remain strong.
The Reserve Bank of India (RBI) released the December 2024 Financial Stability Report (FSR) on December 30, assessing the Indian financial system's resilience. The report, reflecting the assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC), highlighted the robustness of the Indian financial system amid global vulnerabilities.
The report covered global and domestic economic conditions, the performance of scheduled commercial banks (SCBs) and non-banking financial companies (NBFCs), and the insurance sector's solvency.
The global financial system shows resilience, but medium-term risks persist, including stretched asset valuations, high public debt, geopolitical conflicts, and emerging technology risks, the report said. The Indian economy and domestic financial system remain strong, supported by sound macroeconomic fundamentals and healthy balance sheets, it added.
|
