Rising commodity prices, supply chain disruptions, and negative growth prospects along with the war in Ukraine are all causes for worry for the global economy, according to the 25th issue of Financial Stability Report (FSR) released by the RBI. The FSR is the overall assessment of financial stability risks and the resilience of the financial system conducted by the Sub-Committee of the Financial Stability and Development Council (FSDC).

On the contrary, the Indian market leaves space for optimism. “While corporate sales and profitability have risen, a durable commencement of the capex cycle remains elusive. Bank credit growth is picking up steadily, already clocking double digits. Banks have also bolstered capital and liquidity positions while asset quality has improved. Non-banking financial companies (NBFCs) remain well capitalised,” as per the FSR.

Fibre2Fashion News Desk (NB)