The unit will prepare financial stability reports, develop a database of key variables which could impact financial stability in coordination with the supervisory wings of the Reserve Bank of India and also develop a time series of a core set of financial indicators. It will also conduct systemic stress tests to assess resilience in the time of economic downturn and also develop models for assessing financial stability.
Reserve Bank of India in its annual policy statement issued in April 2009, had proposed among other initiatives, the setting up the unit in the Reserve Bank taking the services of inter-disciplinary expertise from various departments like supervisory, regulatory, statistics, economics and financial markets..
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