The Confederation of Indian Industry (CII) and Indian Banks' Association (IBA) have launched a Financial Conditions Index for the Indian economy to make an assessment of the overall financial conditions on a quarterly basis.
For the first quarter of FY 2015-16, the CII - IBA Financial Conditions Index shows that the overall financial conditions for the Indian economy are favourably poised, as banks and financial institutions see significant improvement in the cost of credit and funding liquidity in the banking system with external financial linkages and economic activity witnessing relatively moderate improvement.
Commenting on the launch of the index, Chandrajit Banerjee, Director General, CII said "Sound financial conditions in an economy play an intrinsic role in determining monetary stability and thus proper functioning of the financial economy."
"Due to a strong positive correlation between the financial and real economy, it becomes an imperative to gauge the prevailing and projected financial situation vis-a-vis the macro-economic scenario on a continuous basis. The CII - IBA Financial Conditions Index is a significant step in this direction," he added.