Mumbai, July 23 -- India's financial system remains stable and well-prepared to withstand global uncertainties, according to the Financial Stability Report published in the RBI July Bulletin.

The report notes that the global financial system has remained resilient despite repeated shocks, including the recent conflict in West Asia. Financial markets have stayed largely stable, supported by moderate oil prices, strong corporate earnings, investment in artificial intelligence (AI), and favourable financial conditions. However, risks continue to persist due to geopolitical tensions, supply chain disruptions, high public debt, elevated asset valuations, and vulnerabilities in non-bank financial institutions.

For India, the RBI said the econ...