RBI Updates 2015- Financial Stability Report 2015:
Important points about the Financial Stability Report June 2015, which was released by the RBI were given here below, under the RBI Updates 2015. Candidates those who are preparing for upcoming IBPS RRB/PO Exams can use this material.
RBI releases Financial Stability Report June 2015:
The RBI on 25thJune 2015 released the Financial Stability Report (FSR) June 2015. It was the eleventh issue of its half yearly publication. The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system.
Highlights of Financial Stability Report (FSR) June 2015:
Macro-Financial Risks Global Economy and Markets:
Global economic recovery still seems to be far from being self-sustaining even as spillovers from large-scale monetary accommodation inadvanced economies (AEs)are increasing the challenges foremerging market and developing economies (EMDEs).
Developments on the Greek debt crisis front and uncertainty over the timing of rate increases by the US Federal Reserve remain immediate possible triggers for global financial market volatility.
Domestic Economy and Markets: There has been a significant improvement in the macroeconomic environment and economic performance is expected to be better in near future. However, price pressures arising from possible sub-normal monsoon remains a significant risk to food and headline inflation.
While foreign portfolio flows to India have been strong during past year, unexpected changes in AE monetary policy stances may lead to slowdown/reversal of such flows with implications for segments of financial markets.
Financial Institutions: Soundness and Resilience Scheduled Commercial Banks (SCBs):The performance of SCBs in terms of growth in business has moderated further during the period September 2014-March 2015.The public sector banks (PSBs)continued to record the lowestcapital to risk-weighted assets ratio (CRAR)among the bank-groups.
· The maximum decline in CRAR was registered by PSB with 1.8 percentage points between March 2011 and March 2015 followed byforeign banks (FBs) at 1.5 percentage points and private sector banks (PVBs) at 1.1 percentage points.
· PSBs recorded the highest level of stressed assets at 13.5 percent of total advances as of March 2015, compared to 4.6 percent in the case of PVBs.
· Net non-performing advances (NNPAs)ratio of PSBs increased from 1.3 percent to 3.2 percent and in the case of PVBs, it increase from 0.8 percent to 0.9 percent
· While risks to the banking sector, as reflected by the banking Stability Mao, have moderated marginally since September 2014, concerns remain over the continued weakness in asset quality and profitability.
· Urban Co-operative Bank and Non- Bank Financial Companies:The asset quality of ScheduledUrban co-operative banks (UCBs)improved, whereas, asset quality ofnon-bank financial companies (NBFCs)continued to deteriorate.
Important RBI Updates in 2015- Check Below:
- Features of Atal Pension Yojana- RBI Updates 2015
- Net Stable Funding Ratio (NSFR)- RBI Updates 2015
- Prepaid Payment Instruments (PPI)- RBI Updates 2015
- Public Debt Management Agency (PDMA)- RBI Updates 2015
- Data on International Banking Statistics- RBI Updates 2015
- RBI Guidelines on IFSC Banking Units (IBUs)
- Highlights of RBI Policy- RBI Updates 2015
- Latest RBI Updates in June 2015- Download in PDF