Macro stress tests of credit risk at commercial banks have revealed that gross non-performing assets (NPAs) can jump to 9.5 percent by September 2022 under severe stress scenario or 8.1 percent under the baseline scenario from 6.9 percent in September 2021, the Reserve Bank of India (RBI) said in its Financial Stability Report released on December 29.
However, the scheduled commercial banks would be able to comply with the minimum capital requirements at the aggregate and individual levels even under severe stress scenarios, the report said.
The central bank’s report assesses the risks to financial stability and the resilience of the financial system.
Some of the key highlights of the Financial Stability Report are as follows:
Resilience of financial institutions:
Macro-financial risks
Domestic economy
Finance sector regulators in the country have bolstered efforts to enhance the resilience of the financial system and achieve a sustainable recovery, the financial stability report said.
(Edited by : Shoma Bhattacharjee)
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