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RBI report says Indian financial system stable despite slowdown

by Janam Web Desk
Dec 27, 2019, 11:52 pm IST
in Business

New Delhi: The Reserve Bank of India (RBI), today, released the 20th issue of the Financial Stability Report (FSR), which states that despite a slowdown in the economy the financial system is stable. It follows after the government recapitalized the public sector banks.

The RBI also said that many uncertainties still remain which may affect the financial system. The factors which raises the risks are global and domestic economic uncertainties and geopolitical ones. These include delay in Brexit deal, rumours of impending recession, trade tensions, oil market disruptions and other geopolitical risks.

This has led to a global downturn by pulling down consumer confidence and  investment intentions. The report said that unless these issues are sort out, the global downturn could continue.

RBI said that it is a challenge to revive consumption and investment in the country while at the same time preventing the spillover from global financial markets affecting our economy.

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