RBI released June 2016 Financial Stability Report

आरबीआई ब्लॉक चेन तकनीकी के फायदे का अध्ययन कराएगा

Question: Recently Reserve Bank of India has released which of the following edition of its a biannual publication named “Financial Stability Report-2016”?
(a) 13th
(b) 12th
(c) 11th
(d) 10th
Ans. (a)
Related facts:

  • On 28 June 2016 Reserve Bank of India released the Financial Stability Report (FSR) June 2016, a biannual publication and the thirteenth in the series.
  • The theme of the report Is “An optimal configuration for the financial system – Banks versus Market”.
  • Highlights of FSR- June 2016 are:
  • India’s financial system remains stable, even though the banking sector is facing significant challenges.
  • As global uncertainties and transiting geopolitical risks impact India, continuation of sound domestic policies and structural reforms remain the key for macroeconomic stability.
  • The global recovery remains fragile amidst weak and uneven growth, a slowdown in world trade and prevailing uncertainties in financial and commodities markets.
  •  The unintended side effects of current ultra-easy monetary policies being pursued in many advanced economies – without any clear signs of an exit strategy, are becoming evident.
  • Indian economy at this juncture stands out in terms of growth and investment potential.
  • With the Government’s commitment to continue on the path of fiscal discipline, the efforts on containing the revenue deficit and rationalising subsidies need to be reinforced, even as gross fixed capital formation needs a fillip.
  • India’s external sector indicators show a relatively stronger position. However, a faster growth in India’s oil import in terms of volume in recent years makes it imperative to be alert to the risks of commodity cycle reversals.
  • The prediction of a normal monsoon augurs well for agriculture sector growth in 2016-17, although the spatial and temporal distribution matter as much as the total quantum of rainfall.
  • While stress in the corporate sector showed some signs of moderation in 2015-16, the risks of lower demand and weaker debt servicing capacity continue.
  • The business of scheduled commercial banks (SCBs) slowed significantly during 2015-16.
  • The gross non-performing advances (GNPAs) ratio increased sharply to 7.6 per cent from 5.1 per cent between September 2015 and March 2016, largely reflecting reclassification of restructured standard advances as non-performing due to asset quality review (AQR).
  • The restructured standard advances ratio declined but with a marginal increase in the overall stressed advances ratio from 11.3 per cent in September 2015 to 11.5 per cent in March 2016.
  • The capital to risk-weighted assets ratio (CRAR) of SCBs showed some improvement across the bank-groups.
  • Asset quality of scheduled urban co-operative banks (SUCBs) as well as non-banking financial companies (NBFCs) improved.
  • The performance of NBFC sector in general is relatively better than that of PSBs.
  • Financial Stability Report reflects the overall assessment on the stability of India’s financial system and its resilience to risks emanating from global and domestic factors.
  • The Report also discusses issues relating to development and regulation of the financial sector.

Reference:
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=37342
http://indianexpress.com/article/business/banking-and-finance/raghuram-rajan-ebi-non-performing-assets-npas-banks-2881685/