Foreword

List of Select Abbreviations

Overview

Chapter I : Macro-Financial Risks

Global

Growth

Unconventional Monetary Policies – Exit

Domestic

Growth

CAD and External Sector Vulnerability

Fiscal Consolidation

Government Borrowing Programme - Impact on Yields

Equity Markets

Saving in the Economy

Housing Market

Liquidity: Banking and Systemic

Corporate Performance

Chapter II : Financial Institutions: Soundness and Resilience

Assessment of Risks - Banking Sector

Distress Dependencies and Interconnectedness

Banking Stability Measures (BSMs) – Distress Dependency Analysis

Network Analysis

Scheduled Commercial Banks

Scheduled Urban Co-operative Banks

Non-Banking Financial Companies

Insurance

Pension Fund

Chapter III : Financial Sector Regulation and Infrastructure

Implementation of Global Regulatory Reforms

Basel – III

Over The Counter Derivatives

Legal Entity Identifier System

Systemically Important Financial Institutions

Shadow Banking

Market Conduct and Consumer protection

Technology Risks in the Changing Business Environment

Financial Market Infrastructure

Annex-1: Systemic Risk Survey

Annex-2: Methodologies

LIST OF BOXES

1.1

Unconventional Monetary Policies - Risks

1.2

Corporate Bond Markets in India: Some Persisting Issues

2.1

Estimation of Losses

3.1

Regulation, Innovation and Regulatory Dialectics

3.2

Major Changes Announced in the LCR Guidelines

3.3

Extension of SIFI framework to D-SIBs

3.4

Virtual Currency Schemes

LIST OF CHARTS

1.1

GDP Growth and Forecasts

1.2

Macro and Financial Markets Stability Map

1.3

Growth Forecasts for the BRICS Nations

1.4

Sources of Financing India’s CAD

1.5

India’s Gold Imports

1.6

Current Account Balances and Exchange Rate Movements

1.7

GOI Market Borrowing Programme: Redemptions

1.8

Debt to GDP Ratio

1.9

BSE IPO Index, BSE Sensex and NSE Nifty

1.10

Resource Mobilization via Corporate Bonds

1.11

Saving in the Indian Economy

1.12

House Price Indices: India

1.13

Growth in Bank Loans to the Housing Sector

1.14

Share of Credit to the Housing Sector in Non Food Credit

1.15

Systemic Liquidity Indicator

1.16

Bond Issuances by Indian Corporates Abroad

2.1

Banking Stability Indicator and Map

2.2

Movements of JPoD and BSI

2.3

Distress between specific banks

2.4

Lending in the interbank market

2.5

Borrowing in the interbank market

2.6

Network of the interbank call money market

2.7

Network of the interbank CD market

2.8

Network of the Financial System

2.9

Liquidity Contagion in the Financial System

2.10

Credit and Deposits Growth: Y-o-Y Basis

2.11

Seasonal Factors of Credit and Deposit

2.12

Seasonality in Credit and Deposit

2.13

Allocation of Credit – Select Sectors

2.14

Y-o-Y Credit Growth – Select Sectors

2.15

Capital Adequacy

2.16

Leverage Ratio of SCBs

2.17

Bank-wise Leverages and their Riskiness of Assets

2.18

Assets Quality Indicators

2.19

Asset Quality - Seasonal Factors

2.20

Restructured Standard loans to Total loans Ratio

2.21

Stressed Loans : Sector-wise

2.22

Composition of Total Operating Income: Bank-group wise

2.23

Income to SCBs from Commission of Insurance Companies

2.24

Contribution of Bank-groups to NII and OOI of SCBs

2.25

NIM of Select Countries

2.26

Projection of System Level GNPAs

2.27

Projection of System Level CRAR

2.28

Projection of Bank-group wise GNPAs and CRAR

2.29

Top-down Stress Tests – Credit Risk

2.30

Bottom-up Stress Tests – Credit & Market Risks

2.31

Bottom-up Stress Tests – Liquidity Risk

2.32

Trend in Notional Principal of Total Derivatives

2.33

Derivatives Portfolio of SCBs

2.34

Share of Inter-bank segment in derivatives transactions

2.35

Credit Equivalent of Derivatives Portfolio

2.36

MTM of Total Derivatives

2.37

Stress Tests - Impact of shocks on Derivatives Portfolio of Select Banks

2.38

Impact of Shocks on Capital Position – SUCBs

2.39

Impact of Liquidity Shocks – SUCBs

2.40

Trends in Capital to Risk Weighted Assets Ratio

2.41

Trends in Gross NPA Ratio

2.42

Trends in Return on Assets

2.43

Trends in Advances to Real Estate Sector

2.44

Trends in Exposure to Capital Market

2.45

New Business Premium

2.46

Composition of New Business Premium

3.1

RWA density

3.2

Public Deposits of NBFCs

3.3

Number of companies - NBFC-D and NBFC-ND-SI

3.4

Total Assets - NBFC-D and NBFC-ND-SI

LIST OF TABLES

1.1

External Sector Vulnerability Indicators

1.2

Resource Mobilisation in the Equity Market : Public and Rights Issues

1.3

Corporate Sector Performance

2.1

Contagion due to the distress in one of the five largest borrower banks

2.2

Liquidity contagion in the financial system if one of the large lenders/ investors is under distress

2.3

Estimated Losses of SCBs

2.4

Profitability of SCBs

2.5

Income components of SCBs - Select Ratios

2.6

Macroeconomic Scenario Assumptions

2.7

Projected Sectoral NPA

2.8

Select Financial Soundness Indicators of SUCBs

2.9

Developments in New Pension System

2.10

Weighted Average Returns on Pension Funds

3.1

Capital requirements for Indian banks under Basel III

3.2

Exposure of NSCCL and ICCL to top five banks