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Basel I and Basel II Compliance: Issues for Banks in India

Author

Listed:
  • Sreejata Banerjee

    (Madras School of Economics)

Abstract

Random effects panel data analysis is applied to identify financial parameters that influence banks in India in complying with Basel I. The private sector and foreign banks are affected by credit risk weighted assets; they are guided by the risk in their loan portfolio. The public sector banks are influenced by credit deposit ratio, capital and return on asset. Tobit censored regression model for Basel II shows that business per employee and profit per employee influence CRAR of banks belonging to different ownership in India. In Basel II phase, the net non-performing assets influences foreign banks operating in India.

Suggested Citation

  • Sreejata Banerjee, 2012. "Basel I and Basel II Compliance: Issues for Banks in India," Working Papers 2012-068, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2012-068
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    References listed on IDEAS

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    Cited by:

    1. Sreejata Banerjee & Malathi Velamuri, 2015. "The conundrum of profitability versus soundness for banks by ownership type: Evidence from the Indian banking sector," Review of Financial Economics, John Wiley & Sons, vol. 26(1), pages 12-24, September.

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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