Some stability returns

RBI report suggests banks weathering pandemic

The Reserve Bank of India (RBI) on Thursday released its Financial Stability Report (FSR), which analyses the macro-financial risks facing the Indian economy. The RBI’s opinion on financial risks, particularly to the banking sector, is important at a time in which the Indian and global economies are still suffering because of the effects of Covid-19. Some sectors were brought to a standstill and the pandemic had a very uneven effect across industries and geographies. In this context, the FSR has some relatively good headline news. In particular, the RBI’s stress tests suggest that the health of the banking sector might