Welcome to Finextra. We use cookies to help us to deliver our services. We'll assume you're ok with this, but you may change your preferences at our Cookie Centre.
Please read our Privacy Policy.

Accept
Channels
Profile
Location
Pune
Member since
2012
Writes about
Regulation & Compliance

Rajneesh's blog archive

2012 (1)
Rajneesh Kumar

Rajneesh Kumar

Associate Consultant at Infosys Ltd
Message Message me Posts: 1 Comments: 2

Blogs

 

Basel III Compliance: Challenges for PSBs in India

09 Nov 2012

Basel III norms are supposed to be implemented in India starting next year in 2013 and will be completed by 2018. In the aftermath of the financial crisis of 2008-09, the Basel Committee on Banking Supervision in 2010-11 came up with the new stringent capital adequacy requirement along with the new counter-cyclical capital buffers. The stringent c...

3

See all Rajneesh's blogs

Rajneesh is Commenting on

Basel III Compliance: Challenges for PSBs in India

  @ K Swaminathan: Thanks for replying. Strong views those on BIS and I respect that. The reality is that all central Banks the Fed in US, ECB in Europe or RBI in India are looking at more regulation with or without Basel III and the Banks have to do business and remain profitable. More regulations for capital adequacy directly hits cost of operations as the Banks have to leave aside funds to meet various capital adequacy requirement and have to spend more effort towards greater level of regulatory reporting. It is here that technology comes in to help banks to automate much of the regulatory reporting and compliance related effort. Also, Basel III will be implemented in a phased manner beginning next year (2013). The 5 year window has been given so that it does not impact growth significantly.

12 Nov 2012 Reply Read article

Basel III Compliance: Challenges for PSBs in India

  @ ketharaman Swaminathan: For the first point, agreed that the opposition for Golden Share in India in the near future will be too much for the government to implement it. So, that really leaves the 2nd option of creating a Banking holding Company. This in itself will not be easy either. For your second point, at current levels the Public Sector Banks are well capitalized, but looking at the growth expected for Banks and the financial tightrope government finds itself.. from where ll the funds to recapitalize banks come for the government to maintain its majority stake in PSBs. That is the larger question that needs to be addressed. Basel III may not be required urgently for Banks in India, but in 5 years' time thing might be different.

12 Nov 2012 Reply Read article