The IMF said that unsound macroeconomic policies and inefficient payment systems are among the drivers of cryptocurrency adoption in emerging economies
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
RBI report suggests banks weathering pandemic
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
Loan Moratorium verdict: It also declared that compound interest will not be charged for the period of moratorium.
The Reserve Bank of India's (RBI's) Financial Stability Report indicates an escalation of gross non-performing assets to 14.8 per cent
The FSR projects a sharp increase in banks' gross non-performing assets by September 2021
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
Bad bank will only kick the can down the road
While credit extended by them has fallen substantially, the sector has seen an increase in bad loans ratio, too
The low valuations of state-run banks also make it difficult for them to tap the market
Different stance on NPAs will be the discussion point; report was slated to release on Wednesday
Non-banking financial companies may well face a second wave of liquidity problems after the loan moratorium is lifted, writes Raghu Mohan
The issue of financial stability in monetary policy has always been an unsettled issue, ever since the global financial crisis
Report says despite broad stability in financial markets, pandemic could amplify financial vulnerabilities, including corporate and household debt burden in the case of severe economic contraction
Report says pullouts from funds could be concerted in times of stress
In March, the RBI had announced a moratorium on repayment of term loans till May 31. It was later extended for another three months.
Gross NPAs of banks may rise from 8.5% this March to 12.5% by March 2021 but could worsen to 14.7% under very severely stressed scenarios. However, no bank will fail, apex vank says in FSR
The CII president is not in favour of waiver of interest by banks during the moratorium period
A more granular analysis of FY19 and FY18 credit data shows that of the 161 and 148 firms which fall in the 'very large accounts' category, 126 firms were common for both the years