IDEAS home Printed from https://ideas.repec.org/a/icf/icfjbm/v9y2010i4p21-35.html
   My bibliography  Save this article

Basel I and Basel II Norms: Some Empirical Evidence for the Banks in India

Author

Listed:
  • Neelam Dhanda
  • Shalu Rani

Abstract

The recent financial sector crisis and the failure of banking system even in the developed countries like US have forced the policy makers and researchers to look into the details of such failures. Capital adequacy is an indicator of the financial health of the banking sector. It is measured by the Capital to Risk Weighted Asset Ratio (CRAR), defined as the ratio of a bank’s capital to its total risk-weighted assets. Financial regulations generally impose a capital adequacy norm on their banking and financial system in order to provide a buffer to absorb unforeseen losses due to risky investments. The CRAR is the most widely employed measure for the soundness of a bank. Globally, the CRAR ranges between 7.1% and 34.9%. The overall CRAR of the Indian scheduled commercial banks at the end of March, 2007 was 12.3%, as against the Indian regulatory requirement of 9%, which itself was higher than the Basel norm of 8%. This study presents the status of Capital Adequacy Ratio (CAR) of different categories of banks and also ascertains the impact of application of Basel II norms on CAR of selected banks.

Suggested Citation

  • Neelam Dhanda & Shalu Rani, 2010. "Basel I and Basel II Norms: Some Empirical Evidence for the Banks in India," The IUP Journal of Bank Management, IUP Publications, vol. 0(4), pages 21-35, November.
    • Handle: RePEc:icf:icfjbm:v:9:y:2010:i:4:p:21-35
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjbm:v:9:y:2010:i:4:p:21-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.