Page 2 - Financial Stability Report

'Important to arrive at a common international approach to crypto': RBI

Financial Stability Report: The FTX turmoil, RBI said, revealed that crypto is highly volatile, exhibits high correlations with equities and does not act as a hedge against inflation

Act now to bring down inflation, safeguard financial stability: IMF Chief

The International Monetary Fund on Thursday urged policy makers across the world to act now to bring down inflation, put in place responsible fiscal policy, safeguard financial stability and carry reforms to address climate change, make digitalisation work for people and address inequality. Speaking to reporters at a press conference here, IMF Managing Director Kristalina Georgieva said, "The IMF is working with our 190 members on these issues. Our economic analysis is front and centre to help countries navigate this complex environment and avoid policy mistakes. Describing it as a difficult global environment, Georgieva said the world economy has been hit by one shock after another the coronavirus pandemic, Russia's invasion of Ukraine and climate disasters on every continent. They continue to harm people's lives and they have caused a cost-of-living crisis, she noted. The immediate toll is clear. On Tuesday, we cut our global growth forecast to 2.7 per cent in 2023. Across many .

Top US regulators say cryptocurrency poses financial stability risks

Top regulators on Monday recommended a series of new safeguards to ensure that a growing and unregulated cryptocurrency market doesn't imperil US financial stability. Among seven major recommendations, regulators called on Congress to pass legislation that would address the systemic risks caused by the growth of stablecoins, which are a form of cryptocurrency pegged to the price of another financial asset, like the US dollar or gold. Recent volatility in the cryptocurrency market, especially in stablecoins, has made regulators particularly wary about the need for regulation as usage of the digital asset continues to grow. Members of the Financial Stability Oversight Council met on Monday to approve the recommendations of a 125-page report created in response to President Joe Biden's March executive order on digital assets. The report also calls for giving agencies greater regulatory power over cryptocurrencies and digital assets. The oversight council is an interagency group heade

Digital currency: The govt would do well not to get carried away on CBDC

If financial inclusion is the goal of issuing CBDCs, it might not be worth it since UPI has been fairly successful in achieving it

SFBs' balance sheet growth raises quality concerns, says RBI report

Restructured standard advances remain higher than pre-pandemic levels, though below the peak of Sep 2021; their share was 3.5% of total advances as of March 2022

RBI's financial stability report flags risks with public debt profile

A credible strategy to ensure debt sustainability calls for reducing primary deficits, the central bank said in its Financial Stability Report

RBI hints at disconnect between economy and equity rally

While the retail holding in NSE listed companies had risen between December 2019 and September this year, their holding in equity mutual funds had seen a decline, the report observed.

Asset quality set to worsen, but banks resilient enough: RBI report

The GNPA ratio of PSBs, which was 8.8 per cent in September this year, may deteriorate to 10.5 per cent by September 2022 under the baseline scenario

RBI flags regulatory concerns on big tech's role in financial services

The RBI, in its bi-annual Financial Stability Report, had flagged the entry of big tech in financial services in emerging markets such as India.

Emerging market 'cryptoization' threatens financial stability: IMF

The IMF said that unsound macroeconomic policies and inefficient payment systems are among the drivers of cryptocurrency adoption in emerging economies

Bad debts to rise due to Covid, but banks adequately capitalised: RBI FSR

The ferocity of the second wave of Covid-19 has dented economic activity, but monetary, regulatory and fiscal policy measures have helped stabilise markets, and maintain financial stability, says FSR

Some stability returns

RBI report suggests banks weathering pandemic

Market in distressed assets may be huge, but deal-making faces headwinds

With the Supreme Court vacating the one-year breather on the filing of insolvency proceedings, it's back to the grind on the bad-loans front

Moratorium verdict: Prepare for shock when a more realistic picture emerges

Loan Moratorium verdict: It also declared that compound interest will not be charged for the period of moratorium.

After the moratorium: Booster dose for the IBC

The Reserve Bank of India's (RBI's) Financial Stability Report indicates an escalation of gross non-performing assets to 14.8 per cent

Financing the recovery: Are banks in a position to partner India Inc?

The FSR projects a sharp increase in banks' gross non-performing assets by September 2021

The BIC's time to resolve recap issues is now

Inadequately capitalised banks will face problems in increasing their credit portfolios. A credit squeeze on account of banks' balance-sheet constraints would also have larger macroeconomic dimensions

A poor idea

Bad bank will only kick the can down the road

Asset quality of NBFCs may deteriorate further: Financial stability report

While credit extended by them has fallen substantially, the sector has seen an increase in bad loans ratio, too

Capitalisation worries for banks to get bigger: Financial stability report

The low valuations of state-run banks also make it difficult for them to tap the market