The Financial Stability and Development Council (FSDC) chaired by finance minister Nirmala Sitharaman on Thursday cautioned that the pandemic poses a serious threat to the stability of the global financial system as the ultimate impact of the crisis and the timing of recovery is uncertain at this point of time. “While, decisive monetary and fiscal policy actions aimed at containing the fallout from the pandemic have stabilized investor sentiment in the short-run, there is a need to keep a continuous vigil by government and all regulators on the financial conditions that could expose financial vulnerabilities in the medium and long term.