Page 2 - Financial Stability Report

RBI's action against regulated entities rises even as amounts fall

According to Financial Stability Report, the enforcement action by the banking regulator increased to 161 entities in December 2023 - May 2024 from 146 entities in June 2023 - November 2023

Cyber risk to stability

Financial regulators need to be vigilant

Let's get real about rates

Given myriad cross currents across inflation, growth and financial stability, monetary policy in 2024 will have to cross the river by feeling the stones

Yield spread between state bonds and g-sec widens to two-year high

The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022

Banks to remain well capitalised even under severe stress: RBI report

Bad loans from agri remain high at 7%

Banks' capital adequacy ratio to fall 71 bps on higher risk weight: RBI

Higher risk weight to dampen growth exuberance, improve credit quality

Risk of Oil price spike impacting India in Fy25 is low: CEA Nageswaran

An oil price surge of 10 per cent from the baseline of $85 per barrel could weaken domestic growth by 15 basis points and increase inflation by 30 basis points

Acharya's wish: RBI needs to deliver 4% retail inflation year after year

Reminds analysts, bond markets that inflation target is 4% and not 6%

ESG is sensible; it means doing business the right way: Sankar Chakraborti

'The ESG concept is relatively new compared to conventional risk-management frameworks'

Don't dodge lender if default is imminent; request for loan recast instead

Also explore options such as swapping higher-cost debt with lower-cost alternatives, and debt consolidation

States' financial profile better in FY23; debt stays high: RBI report

At a disaggregated level, a few large states have debt-to GSDP ratios exceeding 35 per cent, the report added

Global financial stability at risk from banking turmoil: IMF chief

Adding to a growing chorus of warnings from economic leaders, the IMF chief said it was clear that risks to financial stability had increased after the recent collapse of Silicon Valley Bank

Explained: How sensitive is the issue of pledge of shares by promoters?

Extant Sebi rules require disclosure of pledge of promoters' equity, but there's nothing that requires disclosure of the effective leverage

Pak EC suspends 271 lawmakers for not submitting financial statements

Pakistan's top election body has suspended the membership of 271 lawmakers across the country for not submitting their statements of assets and liabilities. The statements have to be filed by December 31 every year, and the lawmakers were directed by the Election Commission of Pakistan (ECP) to submit their financial statements up to June 30, 2022, by January 16, 2023. It also warned that failing to submit the financial statements would result in the suspension of their respective memberships. The ECP said on Monday that those targeted include 136 Members of the National Assembly, 21 senators, and 114 Members of Provincial Assemblies.

'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