<h1>FSDC Reviews Banking Asset Quality, Basel III Capital Adequacy, and Urges Action on Gold Imports and Bond Market.</h1> The Financial Stability and Development Council (FSDC), chaired by the Union Finance Minister, convened to assess the banking system's asset quality and capital adequacy. Discussions included government and RBI initiatives to monitor credit quality and additional capital requirements under Basel III. Despite asset quality concerns due to economic conditions, banks' strong capital adequacy was deemed sufficient to withstand stress. The Council reviewed the Financial Sector Legislative Reforms Commission's recommendations and the National Strategy for Financial Education. Concerns about rising gold imports and the development of the corporate bond market were also addressed, with calls for expedited actions in these areas.