‘Tighter bank-NBFC ties, external spillovers key risks’

India's financial stability report for 2026 highlights domestic resilience amidst global uncertainty. While the banking system is sound, deeper financial linkages between banks and NBFCs amplify contagion risks. External spillovers from geopolitical and trade tensions, coupled with volatile global markets, pose the primary threats, impacting the rupee and increasing market stress.

‘Tighter bank-NBFC ties, external spillovers key risks’
India's financial stability report for 2026 highlights domestic resilience amidst global uncertainty. While the banking system is sound, deeper financial linkages between banks and NBFCs amplify contagion risks. External spillovers from geopolitical and trade tensions, coupled with volatile global markets, pose the primary threats, impacting the rupee and increasing market stress.