Syllabus section: Economy

 

Why in News?

The Reserve Bank of India recently released to the financial stability report for December 2020. This is the 22nd issue of financial stability report of the apex bank.

Key findings:

• The Gross non-performing assets ratio of the scheduled commercial banks is to increase to 13.5% by September 2021.

• The gross non-performing asset (GNPA) ratio of private sector banks (PVBs) and foreign banks (FBs) may increase from 4.6% and 2.5% to 7.9% and 5.4%, respectively, over the same period.

About:

• The Financial Stability Reports, published by Reserve Bank of India, after approved by FSDC Subcommittee since its inception, taking inputs from financial sector regulators i.e. RBI, SEBI,PFRDA, IRDAI including Ministry of Finance, are periodic exercise for reviewing the nature,magnitude and implications of risks that may have a bearing on the macroeconomic environment,financial institutions, markets and infrastructure.

• These reports will also assess the resilience of thefinancial sector through stress tests.

 

Source: The Hindu