
The Reserve Bank of India's Financial Stability Report (FSR) indicates that up to four banks might need to utilize capital conservation buffers under adverse economic scenarios, though minimum capital norms are expected to be met. The report also highlights external uncertainties like US equity corrections as near-term risks, potentially causing outflows and rupee volatility, despite the economy's overall resilience. Additionally, the RBI flagged concentration risks in bank-NBFC interlinkages, noting that banks acquiring NBFC-originated loans face potential correlated risks and higher loan losses.
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