Page 51 - Banking Finance February 2026

ARTICLE
ARTICLE

Systemic Risk

Survey - A Mirror

to India's Financial

Stability Puneet Kumar

Chief Manager (Research)
Union Bank of India,
Gurugram, Haryana

According to the World Gold Council, in the past decade (2015-2024), the global annual average
demand for gold has been around 4,338 tonnes against the average annual supply of 4,771 tonnes,
which was largely driven by 75% of mined gold and 25% of recycled gold.

T he Reserve Bank of India (RBI) regularly conducts financial system where risks can emerge domestically

the Systemic Risk Survey (SRS) to capture the per-
or spill over from international developments. Traditional
ceptions of market participants regarding poten-
tial risks to the financial system. The survey provides a valu- indicators such as GDP growth, inflation, or current
account deficit capture only part of the story. The SRS
able understanding of the collective sentiment of stakehold- complements quantitative data with qualitative insights,
ers such as banks, non-banking financial companies, rating offering regulators a broader view of perceptions about
agencies, financial market participants, and academic ex- vulnerabilities.
perts. The SRS serves as an early-warning mechanism for
policymakers by capturing perceptions of risk at both do- For the RBI, the SRS acts as an important input into
mestic and global levels.
macroprudential policymaking, helping to identify where
The May 2025 round of the SRS, published in the Financial vulnerabilities may arise and how confidence among stake-
Stability Report (FSR) - June 2025, reveals a strong sense of holders shifts over time. It ensures that supervisory focus is
optimism about the resilience of the Indian financial sys- not just reactive but also anticipatory.
tem. Notably, 91.9% of respondents believe that the finan-
cial system will remain stable or become more stable over Key Findings of the May 2025 SRS
the next 12 months. This reflects the credibility of India's
macroeconomic fundamentals, effective regulatory actions, 1. Improved Confidence in Stability
and strong capital and liquidity buffers within financial in- The most important finding is that 91.9% of respon-
stitutions. dents believe the financial system will stay stable or get
stronger in the coming year. This is better than previ-
Why the SRS Matters ous surveys and shows growing trust in India's economy

The Indian economy operates in an interconnected global and the strength of its regulations.

44 | 2026 | FEBRUARY | BANKING FINANCE