Basel I and Basel II Compliance: Issues for Banks in India

Published By: Madras School of Economics | Published Date: May, 01 , 2012

Random effects panel data analysis is applied to identify financial parameters that influence banks in India in complying with Basel I. The private sector and foreign banks are affected by credit risk weighted assets; they are guided by the risk in their loan portfolio. The public sector banks are influenced by credit deposit ratio, capital and return on asset. Tobit censored regression model for Basel II shows that business per employee and profit per employee influence CRAR of banks belonging to different ownership in India. In Basel II phase, the net non-performing assets influences foreign banks operating in India.

Author(s): Sreejata Banerjee | Posted on: Mar 13, 2016 | Views() | Download (190)


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