IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

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

Listed author(s):
  • Neelam Dhanda
  • Shalu Rani
Registered author(s):

    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.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" 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.

    Article provided by IUP Publications in its journal The IUP Journal of Bank Management.

    Volume (Year): IX (2010)
    Issue (Month): 4 (November)
    Pages: 21-35

    in new window

    Handle: RePEc:icf:icfjbm:v:9:y:2010:i:4:p:21-35
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.