March 31, 2007, was the date for all Indian banks to implement the globally accepted Basel II norms. But guess what do the Indian regulators do when they realise that very few banks have actually worked towards sticking to this deadline. They simply postpone the deadline, in this case, by two years; how convenient! ...And how pathetic!
The Indian banking system and risk are so finely interwoven that it’s quite an intricate job to detach one from the other. But then, ‘nepotistic flexibility’, which has been the hallmark of our reform process, is not the solution. RBI has to realize that complying with Basel II norms will mean an impervious Tier-I capital base, which will provide stability to banks in an unstable banking environment.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
The Indian banking system and risk are so finely interwoven that it’s quite an intricate job to detach one from the other. But then, ‘nepotistic flexibility’, which has been the hallmark of our reform process, is not the solution. RBI has to realize that complying with Basel II norms will mean an impervious Tier-I capital base, which will provide stability to banks in an unstable banking environment.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
