In the most recent report published in December 2011, we introduced the Financial Stability Indicator based on a combination of Financial Market Stability, Macroeconomic Stability and Banking Stability Indicators. We also introduced new tools for risk assessment such as the Systemic Risk Survey and the Systemic Liquidity indicator in addition to improving the coverage of the network model analysis introduced in the previous FSR.
Most people are aware of RBI’s counter cyclical policies that won us accolades in our management of the crisis. However, we have also taken several measures to address systemic risk arising out of interconnectedness amongst financial institutions such as placing prudential limits on call borrowing and lending, limits on banks cross holdings of bank’s ownership, limits on exposure to single and group borrowers, etc.