Rajnish Optimist 146 Questions 256 Answers 236 Best Answers 1k Points View Profile Rajnish Asked: December 2, 20202020-12-02T12:24:27+05:30 2020-12-02T12:24:27+05:30In: UPSC PRELIMS What are the highlights of Financial Stability Report 2020? Mention highlights of Financial Stability Report 2020? economicsfinance Share Facebook 1 Answer Recent Ishu Innovative 370 Questions 228 Answers 176 Best Answers 1k Points View Profile Best Answer Ishu Innovative 2020-12-02T12:33:44+05:30Added an answer on December 2, 2020 at 12:33 pm The RBI has issued its FSR, a biannual publication representing the collective evaluation of the Financial Stability and Development Council (FSDC) sub-committee on the threats to financial stability and financial system resilience. Highlights Of The Report: Increase In NPA: The gross non-performing assets (GNPA) ratio of all scheduled commercial banks (SCBs) can increase from 8.5 per cent in March 2020 to 12.5 per cent by March 2021. Scheduled Commercial Banks’ capital to risk-weighted assets ratio (CRAR) edged down to 14.8 percent in March, from 15 percent in September 2019. Under the baseline scenario, this ratio could drop to 13.3 percent in March 2021 and to 11.8 percent under a very extreme stress scenario. Bank credit, which had declined dramatically during the first half of 2019-20, fell further down in the following period with the moderation being wide-ranging across bank classes. Total bilateral exposures among financial system entities decreased marginally during 2019-20; with the continuing shrinkage of the inter-bank market and better capitalization of public sector banks (PSBs), contagion losses to the banking system will decrease in different scenarios over the previous year. 2 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions Tell us about the Global Gender Gap Report 2021. Tell us about the Global Hunger Index 2020.