RBI releases monthly bulletin for July 2015

The Reserve Bank of India has released the July 2015 issue of its monthly bulletin.

According to a release of the central bank, the bulletin is accompanied by a financial stability report: June 2015 as a supplement.

Apart from speeches by the top management and current statistics, this issue includes an article on International Banking Statistics of India: 2014 and a summary of the RBI Working Paper titled 'Estimating Sacrifice Ratio for Indian Economy - A Time Varying Perspective'.

The International Banking Statistics of India: 2014 presents an analysis of the Locational Banking Statistics (LBS) based on international assets and liabilities by type of instrument/components, currency, country of residence and sector of counter-party/transacting unit, and nationality of banks functioning in India.

The data on Consolidated Banking Statistics (CBS) give international/ foreign claims as per residual maturity and sector of borrower along with the exposures by country of immediate borrower and on the reallocation of claims (i.e., risk transfers) to the country of ultimate risk.

The data related to International Banking Statistics of India for the year 2014 was released on the RBI website on June 12, 2015 vide Press Release No. 2648.

The five main findings of the bulletin are as follows:

The aggregate international liabilities and assets based on Locational Banking Statistics (LBS) of all BIS reporting countries recorded positive growth in first three quarters of 2014, but declined in December 2014.

The international liabilities of banks in India recorded a gradual decline in annual growth rate during 2014, after recording a high growth of 35.8 per cent in December 2013.

International assets of banks in India also recorded higher growth between September 2013 and September 2014, but increased by only 4.8 per cent in December 2014.

The international claims of Indian banks, on immediate risk basis, based on Consolidated Banking Statistics, on all other countries, increased at a relatively slower pace when compared with the pace observed during the previous year.

The growth (y-o-y) in foreign claims of BIS reporting countries towards all countries, after remaining positive since December 2013 turned negative in December 2014.