Indian banks are still in the early stages of understanding the complexities and opportunities arising from the proposed revised capital adequacy framework, popularly known as Basel II.
In its mid-term review of Annual Policy for FY07, RBI said that this relates to standardised approach for credit risk and the basic indicator approach for operation risk under Basel II.
The European Union's push to introduce new capital requirements for banks through the Basel-II (Revised international capital framework) pact may hit specialist commodity traders, such as large oil companies.
Majority of banks in the country are yet to set up specific budgets for Basel II guidelines, although the industry is confident of meeting the RBI guidelines in this regard, a new study reveals.
The Reserve Bank of India has set up an experts committee to implement Basel II accord by 2006 to strengthen the financial health of banks by adopting globally accepted norms for capital adequacy.
The Indian banks are not prepared to implement the stringent Basel-II norms including that of capital adequacy and non-performing assets in toto by 2006, according to the Federation of Indian Chambers of Commerce and Industry survey.
The Reserve Bank of India will soon initiate discussions with Indian banking entities to introduce Basel-II accord, prudential norms including risk management and capital adequacy guidelines, for smooth transition to the new regulatory framework.
An early action to allow domestic banks to participate in the commodity markets would not only help in improving their competency but would also help in develop their trading and product development skills in commodity derivatives.
BMO Financial Group, a leading financial service provider in North America, has selected i-flex's Reveleus Basel II solution to accelerate its Basel II compliance efforts.
Indian banks, which have strengthened their balance sheets, will trigger mergers and acquisitions to conform to stringent Basel II norms coming into effect in 2007.
Enterprise software company Oracle India would look for business opportunities in banking and healthcare segments during the next one year, managing director Shekhar Dasgupta said.
The Centre on Monday said nationalised banks, which were provided equity as part of capital restructuring need not return it.
Low cost of funds and low credit growth have meant unprecedented levels of capital adequacy ratios (CARs) for banks.
The huge losses suffered by major banks recently, particularly in the United States and the United Kingdom, have brought to the fore the weaknesses of the architecture of the Basel II capital ratios, and have also raised questions pertaining to the wisdom of fair value accounting norms.
Through RAROC and EVA, banks can establish a risk management culture that can create competitive advantage and improve shareholder value.
The sharp rise in the number of structured products rated caused the revenues of leading rating agencies to jump. The quality of these exercises is today reflected in the vastly devalued status of those products. Rating in India can come into its own when there is lot more of debt to be rated, creating enough volumes for the agencies.
Both the issues will be floated simultaneously either this month or the next month, subject to regulatory approvals, ICICI chief financial officer Vishakha Mulye said.
The current fiscal could become a phenomenal year for follow-on issues (FPOs) with companies lining up plans to raise anything in the range of Rs 45,000 to Rs 50,000 crore (Rs 450 - Rs 500 billion) in the coming months.
The State Bank of India has proposed to the RBI to allow it to charge mark-to-market losses on its balance sheet.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances