ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Basel II Norms

Instead of perceiving it as a global initiative, the Indian banking sector needs to look at Basel II as an opportunity to keep its own house in order. It is a necessary framework to improve the stability and resilience of our rapidly evolving banking industry, currently at a critical phase in its expansion. However, it is unfortunate that the current Basel proposals do not explicitly incorporate the mutual benefits of international diversification for advanced as well as developing countries. There is also a fear that too much regulation under Basel II will adversely affect the risk appetite of Indian banks and their lending to credit-starved sectors. It will be a major challenge for the RBI to maintain a healthy credit momentum amid this tighter risk-sensitive framework.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top