On 11 January, 2021, RBI released its 22nd issue of the Financial Stability Report. The RBI evaluated the financial condition of the Scheduled Commercial Banks (SCBs). It compared their pre-pandemic situation with the present-day situation. Stress tests are being done to analyze the vulnerabilities of 46 SCBs on various parameters including Return on Assets (RoA), Return on Equity (RoE), Net Interest Margin (NIM), Credit Concentration etc. It also looked at the interconnectedness in the system do devise policies for macroeconomic stability.
In this banking brief, we have covered the second chapter of the Financial Stability Report, i.e., Financial Institution: Soundness and Resilience. To know more details about it, kindly go through the post.