Capital Adequacy Regime in India: An Overview
Published By: ICRIER on eSS | Published Date: July, 14 , 2007In this paper an analytical review of the capital adequacy regime and the
present state of capital to risk-weighted asset ratio (CRAR) of the banking sector in India has been presented.
In the current regime of Basel I, Indian banking system is performing reasonably well,
with an average CRAR of about 12 per cent, which is higher than the internationally
accepted level of 8 per cent as well as India’s own minimum regulatory requirement of 9
per cent. As the revised capital adequacy norms, Basel II, are being implemented from
March 2008, several issues emerge. These issues from the Indian
perspective has been examined.[Working Paper No. 196]
Author(s): Mandira Sarma, Yuko Nikaido | Posted on: Jun 14, 2010 | Views(1034) | Download (807)