IDEAS home Printed from https://ideas.repec.org/p/ind/icrier/196.html
   My bibliography  Save this paper

Capital Adequacy Regime in India: An Overview

Author

Listed:
  • Mandira Sarma

    () (Indian Council for Research on International Economic Relations)

  • Yuko Nikaido

    () (Indian Council for Research on International Economic Relations)

Abstract

In this paper we present 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. 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. We examine these issues from the Indian perspective.

Suggested Citation

  • Mandira Sarma & Yuko Nikaido, 2007. "Capital Adequacy Regime in India: An Overview," Indian Council for Research on International Economic Relations, New Delhi Working Papers 196, Indian Council for Research on International Economic Relations, New Delhi, India.
  • Handle: RePEc:ind:icrier:196
    as

    Download full text from publisher

    File URL: http://www.icrier.org/pdf/Working_Paper_196.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, pages 72-115.
    2. Koo, Won W. & Taylor, Richard D. & Mattson, Jeremy W., 2003. "Impacts Of The U.S.-Central America Free Trade Agreement On The U.S. Sugar Industry," Special Reports 23069, North Dakota State University, Center for Agricultural Policy and Trade Studies.
    3. Burfisher, Mary E., 2001. "The Road Ahead: Agricultural Policy Reform In The Wto -- Summary Report," Agricultural Economics Reports 34067, United States Department of Agriculture, Economic Research Service.
    4. van Tongeren, Frank & van Meijl, Hans & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics, Blackwell, pages 149-172.
    5. Ashok Gulati, 2002. "Indian Agriculture in a Globalizing World," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 754-761.
    6. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters,in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314 World Scientific Publishing Co. Pte. Ltd..
    7. Valenzuela, Ernesto & Hertel, Thomas & Keeney, Roman & Reimer, Jeff, 2005. "Assessing Global CGE Model Validity Using Agricultural Price Volatility," GTAP Working Papers 1875, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. van Tongeren, Frank & van Meijl, Hans & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics, Blackwell, pages 149-172.
    9. Schmitz, Andrew & Schmitz, Troy G. & Seale, James L., Jr., 2003. "Ethanol from Sugar: The Case of Hidden Sugar Subsidies in Brazil," Policy Briefs 15679, University of Florida, International Agricultural Trade and Policy Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sreejata Banerjee, 2012. "Basel I and Basel II Compliance: Issues for Banks in India," Working Papers 2012-068, Madras School of Economics,Chennai,India.

    More about this item

    Keywords

    Capital Adequacy Ratio; Basel I; Basel II; Reserve Bank of India; SMEs lending;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ind:icrier:196. 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.K. Manjunath). General contact details of provider: http://edirc.repec.org/data/icriein.html .

    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 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 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.