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    Question

    Consider the following statements about ‘Financial

    Stability Report (FSR) 2022’:         I.            This report was released by the International Monetary Fund (IMF).       II.            FSR revealed that bad loans might increase as the macroeconomic situation deteriorates in India.     III.            Financial Stability Report (FSR) is a biannual publication. Which of the statements given above is/are correct?
    A I only Correct Answer Incorrect Answer
    B II only Correct Answer Incorrect Answer
    C III only Correct Answer Incorrect Answer
    D II and III only Correct Answer Incorrect Answer
    E I and II only Correct Answer Incorrect Answer

    Solution

    Global Financial Stability Report is published by the International Monitory Fund (IMF) Statement I is not correct - The Reserve Bank of India releases the Financial Stability Report (FSR). The FSRs are periodic exercises for reviewing the nature, magnitude and implications of risks that may have a bearing on the macroeconomic environment, financial institutions, markets and infrastructure. Statement II is correct - FSR estimates that banks’ bad loans may fall further to 5.3 per cent by March 2023. If the macroeconomic environment worsens, bad loans may rise to 6.2 per cent in a medium stress scenario, deteriorating to 8.3 per cent in a severe stress scenario. Statement III is correct - Financial Stability Report (FSR) is a biannual publication.

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