The Reserve Bank of India said that there has been a significant improvement in the macro-economic environment, and going forward, economic performance is expected to be better. In a six-monthly Financial Stability Report released by RBI said that the strong macroeconomic fundamentals offer India a "reasonable degree of resilience" to address uncertainties, but poor asset quality of banks and managing expectations are key challenges for regulators and the Government. The report said that a relatively stronger macro-economic fundamentals in terms of growth, inflation, and current account and fiscal deficits provide a reasonable degree of resilience to financial system.