Banks are relatively immune to the interference caused by the pandemic and are well protected by regulatory, monetary and fiscal policies.
05 July 2021 Current Affairs:The RBI has published the July 2021 Financial Stability Report. It is a biannual report that reflects financial stability and financial system resilience risks.
Highlights:
♦ Banks' total non-performing assets ratio could rise from 7.48 % in March 2021 to 9.8 % by March 2022.
♦ MSMEs face significant difficulties in meeting their payment obligations.
♦ By the end of March 2021, 15.9 percent of loans of less than Rs. 25 crore to the MSEME sector had gone bad.
♦ In March 2021, the capital to risk-weighted assets ratio (CRAR) of Scheduled Commercial Banks (SCBs) increased to 16.0 3 percent.
♦ In March 2021, the provision coverage ratio was 68.86 percent.
♦ A high PCR ratio indicates that most asset quality issues have been addressed and the bank is not vulnerable.
♦ During the second wave of Covid-19, demand for consumer credit has decreased across banks and non-banking financial companies (NBFCs).
♦ Banks are relatively immune to the interference caused by the pandemic and are well protected by regulatory, monetary and fiscal policies.
Highlights:
♦ Banks' total non-performing assets ratio could rise from 7.48 % in March 2021 to 9.8 % by March 2022.
♦ MSMEs face significant difficulties in meeting their payment obligations.
♦ By the end of March 2021, 15.9 percent of loans of less than Rs. 25 crore to the MSEME sector had gone bad.
♦ In March 2021, the capital to risk-weighted assets ratio (CRAR) of Scheduled Commercial Banks (SCBs) increased to 16.0 3 percent.
♦ In March 2021, the provision coverage ratio was 68.86 percent.
♦ A high PCR ratio indicates that most asset quality issues have been addressed and the bank is not vulnerable.
♦ During the second wave of Covid-19, demand for consumer credit has decreased across banks and non-banking financial companies (NBFCs).
♦ Banks are relatively immune to the interference caused by the pandemic and are well protected by regulatory, monetary and fiscal policies.