On December 30, 2024, the Reserve Bank released the December 2024 issue of the Financial Stability Report (FSR). The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. Highlights of the report are: The global economy and financial system remain resilient, though vulnerabilities exist. The Indian economy and domestic financial system are supported by strong macroeconomic fundamentals. Scheduled commercial banks (SCBs) are sound due to strong profitability, declining non-performing assets, and adequate capital and liquidity buffers; RoA and RoE are at decadal highs and GNPA ratio has fallen to a multi-year low. Macro stress tests show SCBs have adequate capital buffers. Non-banking financial companies (NBFCs) remain healthy. The insurance sector's consolidated solvency ratio remains above the minimum threshold.
Contact:
Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001
Phone: 022 - 2266 0502
Website: www.rbi.org.in
Email: helpdoc@rbi.org.in
The press release number is 2024-2025/1811.
Puneet Pancholy, Chief General Manager
Key Entities Referenced
Financial Stability Report (FSR): A report released by the Reserve Bank reflecting collective assessment of the Sub-Committee of the Financial Stability and Development Council.
Reserve Bank: Releasing the Financial Stability Report
Financial Stability and Development Council (FSDC): The Sub-Committee assesses the resilience of the Indian financial system and risks to financial stability.
Mumbai: Location of the Reserve Bank's Department of Communication.
Scheduled commercial banks (SCBs): Discussed in the Financial Stability Report
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 30, 2024
RBI releases the Financial Stability Report, December 2024
Today, the Reserve Bank released the December 2024 issue of the Financial
Stability Report (FSR), which reflects the collective assessment of the Sub-
Committee of the Financial Stability and Development Council (FSDC) on the
resilience of the Indian financial system and risks to financial stability.
Highlights:
The global economy and the financial system remain resilient. While near-term
risks have receded, vulnerabilities such as stretched asset valuations, high public
debt, prolonged geopolitical conflicts and risks from emerging technologies pose
medium term risks to financial stability.
The Indian economy and the domestic financial system are underpinned by strong
macroeconomic fundamentals, healthy balance sheets of banks and non-banks.
The soundness of scheduled commercial banks (SCBs) has been bolstered by
strong profitability, declining non-performing assets and adequate capital and
liquidity buffers. Return on assets (RoA) and return on equity (RoE) are at
decadal highs while the gross non-performing asset (GNPA) ratio has fallen to a
multi-year low.
Macro stress tests demonstrate that most SCBs have adequate capital buffers
relative to the regulatory minimum even under adverse stress scenarios. Stress
tests also validate the resilience of mutual funds and clearing corporations.
Non-banking financial companies (NBFCs) remain healthy with sizable capital
buffers, robust interest margins and earnings and improving asset quality.
The consolidated solvency ratio of the insurance sector also remains above the
minimum threshold limit.
(Puneet Pancholy)
Press Release: 2024-2025/1811 Chief General Manager