Overview
- The Financial Stability Report released on December 31 projects high growth supported by robust domestic demand, benign inflation, and prudent macroeconomic policies.
- Macro stress tests show scheduled commercial banks can absorb losses under adverse scenarios while keeping capital well above regulatory minimums.
- The report affirms resilience in mutual funds and clearing corporations, citing strong balance sheets and low market volatility.
- Non-banking financial companies remain robust with strong capital buffers, solid earnings, and improving asset quality, while insurers maintain solvency ratios above required thresholds.
- Governor Sanjay Malhotra calls financial stability the RBI’s north star and underscores a regulatory approach that fosters responsible innovation and protects consumers against external spillovers.