Broad categories register ‘medium’ risks for financial system: RBI survey

Within the major categ­ories, however, this time certain components were rated as ‘high’ risk

Topics

Reserve Bank of India | finance sector | Banking sector


Anup Roy 

Crony capitalism has built up slowly in India, emerging as a Frankenstein’s monster a decade and a half after politicians began to unchain the private sector in the early 1990s

Representative image

The RBI systemic risk survey in April-May found broad categories — global, macroeconomic, financial market, institutional and general — registering ‘medium’ risks for the financial system. This is an improvement from ‘high’ institutional risk in the previous two survey rounds.

Within the major categ­ories, however, this time certain components were rated as ‘high’ risk.

For example, commodity price risk, domestic growth and infla­tion, fiscal deficit, corporate vulnerabilities, equity price volatility, banks’ assets quality and capital requir­ement, credit growth and cyber risk were high, while risks relating to global growth and pace of infra development were seen as having waned.

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First Published: Thu, July 01 2021. 23:30 IST