Is our indian banking system good even without the Basel norms??

V

vibhavaidhya

Vibha Vaidhya
the main idea of banking is to solvency even in toughest of times . the basel norms suggesting a stringent credit appraisal method with proper credit pricing is what has been done over ages by the indian banks. if not how else could they have sustained the recent turmoil.

with our lending policy and already existing CAR policy we have had a good shell to protect us . but it may be time to rebuild and renovate the shell for better future use
 
India (RBI) executed Basel I norms from 1992 onward. ... to be pro-cyclical; in good times, when banks were doing well, and the ... are able to hold on business even in a recession without deleveraging. ..... I can share my opinions for public segment banks which hold all around .The Basel III platform, whose main drive has been improving the banking sector's safety and balance, emphasizes the need to enhance the excellent and quantity of capital elements, influence ratio, assets standards, and increased disclosures. This article first lays the framework of Basel III and then incorporates the views of senior executives of Indian banks and risk administration professionals on approaching the challenges of utilizing the Basel III framework, especially in areas such as augmentation of capital resources, growth versus financial stability, challenges for enhanced profitability, deposit pricing, cost of credit, maintenance of liquidity standards, and conditioning of risk structures.
 
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