RBI to submit financial stability report in Dec

The Reserve Bank of India (RBI) would submit a financial stability report on public and private sector banks by December this year, an official of the apex bank said today.

A multi-disciplinary financial stability unit was set up in August this year, RBI adviser B M Mishra told a seminar at the bank's regional office here.

"The financial stability report will by given in December," Mishra said.

The report assumes importance as the financial meltdown has pushed major economies into recession. Indian economy also slowed down even though there was no financial instability.

Maintaining financial stability is one of the primary objective of the central bank, besides containing price rise and promoting growth.

There is a need for periodic stress for banks and formed an integral part of the banks' risk management systems, particularly in view of the growing uncertainties in the global financial markets, Mishra said.

Some 65 other countries, he said, had also opted for preparing such financial stability reports for their banking sectors.