RBI’s 29th Financial Stability Report (FSR) July 2024: An Overview

• The Financial Stability Report (FSR) is a comprehensive, half-yearly publication that involves contributions from all financial sector regulators in India. It reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council on current and emerging risks to the stability of the Indian financial system.
• The July 2024 edition of the FSR highlights various aspects of global and domestic macro financial risks, the soundness and resilience of financial institutions, regulatory initiatives, and an assessment of systemic risk.
• The global economy and financial system demonstrate resilience amidst significant risks and uncertainties. Despite the improvement in near-term prospects, several factors pose downside risks:
  1. Disinflation Pitstops: Challenges in achieving the last mile of disinflation.
  2. High Public Debt: The rising levels of public debt across nations.
  3. Stretched Asset Valuations: Overvaluation of assets in financial markets.
  4. Economic Fragmentation: Growing economic divisions among countries.
  5. Geopolitical Tensions: Persistent geopolitical conflicts and their economic impacts.
  6. Climate Disasters: Increasing frequency and severity of climate-related disasters.
  7. Cyber Threats: Rising threats from cyber-attacks and security breaches.

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Published date : 05 Jul 2024 05:31PM