1) Delayed Monsoon: In 2023, the monsoon arrived over the Kerala coast on June, 8th, which is a delay compared to its normal onset date of June, 1st.
- Monsoons are seasonal winds(Rhythmic wind movements or Periodic Winds) which reverse their direction with the change of season.
Factors Influencing South-West Monsoon:
- differential heating and cooling of land and water;
- shift of the position of Inter Tropical Convergence Zone (ITCZ);
- presence of the high-pressure area, east of Madagascar, approximately at 20°S over the Indian Ocean;
- Tibetan plateau gets intensely heated during summer, which results in strong vertical air currents and the formation of low pressure over the plateau;
- movement of the westerly jet stream to the north of the Himalayas and the presence of the tropical easterly jet stream over the Indian peninsula;
- Southern Oscillation (SO);
- Indian Ocean Dipole (IOD);
2) Expected Credit Loss -Based Loan Loss Provisioning Norms: Recently, the Reserve Bank of India (RBI) said that the banks will be given ample time to implement Expected Credit Loss (ECL)-based loan loss provisioning norms.
- The RBI had previously proposed the adoption of the ECL approach for credit impairment, and banks were given a one-year period for implementation once the final guidelines are released.
- Under this, banks will need to classify financial assets into one of three categories (Stage 1, Stage 2, or Stage 3), with increasing probability of default.
- The expected credit losses approach will enhance the resilience of the banking system in line with globally accepted standards.
- This new approach replaces the current “incurred loss (IL)” model, which delays loan loss provisioning, potentially increasing credit risk for banks.
- To prevent a capital shock, the RBI has proposed a transitional arrangement for the introduction of ECL norms.
3) Atlantic Declaration: The United States and the United Kingdom have announced the Atlantic Declaration for a Twenty-First Century U.S.-UK Economic Partnership.
Major Highlights:
- The Atlantic Declaration is focused on building a resilient, diversified, and secure supply chain, reducing strategic dependencies.
- The Atlantic Declaration Action Plan (ADAPT) sets forth a comprehensive strategy to enhance economic growth, competitiveness, and resilience while prioritizing workers, businesses, climate, and national security.
- Five Pillars:
- Leadership in Critical and Emerging Technologies.
- Cooperation on Economic Security and Technology Protection.
- Partnering on an Inclusive and Responsible Digital Transformation.
- Building the Clean Energy Economy of the Future.
- Strengthening Alliance across Defense, Health Security, and Space.
