Economy

Financial system remains stable despite weakening domestic growth, says RBI

A security guard’s reflection is seen next to the logo of RBI logo at the RBI headquarters in Mumbai. File

A security guard’s reflection is seen next to the logo of RBI logo at the RBI headquarters in Mumbai. File   | Photo Credit: Reuters

more-in

The country’s GDP slowed to a six-year low of 4.5% in the second quarter of FY20, forcing the RBI to slash its growth forecast.

The Reserve Bank on Friday said the country’s financial system remains despite slowing economic growth.

The country’s GDP slowed to a six-year low of 4.5% in the second quarter of FY20, forcing the RBI to slash its growth forecast by 240 basis points to 5% for the fiscal in its December monetary policy review.

“India’s financial system remains stable notwithstanding weakening domestic growth,” the central bank said in the Financial Stability Report.

The report said all major risk groups such as “global risks, risk perceptions on macroeconomic conditions, financial market risks and institutional positions” were perceived as medium risks affecting the financial system.

However, the perception of risks on various fronts like domestic growth, fiscal, corporate sector and banks’ asset quality increased between April and October 2019, it said.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jan 29, 2020 12:15:25 AM | https://www.thehindu.com/business/Economy/financial-system-remains-stable-despite-weakening-domestic-growth-says-rbi/article30413879.ece

Next Story