While these indicators allow us to gauge the soundness on selective basis, the Financial Soundness Index (FSI) indicator offers a more holistic measure. FSI is calculated as an aggregate index assigning 0.25 weights to four key financial soundness indicators including capital adequacy, asset quality, profitability and liquidity.
15. Now let’s turn to our guest speaker himself. Ladies and gentlemen, we are honoured to have with us, Dr. Abhijit Vinayak Banerjee, the Ford Foundation International Professor of Economics at the Massachusetts Institute of Technology, USA. His teaching and research have won him accolades the world over and he stands as a giant in his profession.