BASEL III implications on Indian banks

Abstract

BASEL III norms are written by the Bank of International Settlement's Committee on Banking Supervision (BCBS) whose mandate is to define the reform agenda for the global banking community as a whole. The new rule prescribes how to assess risks, and how much capital to set aside for banks in keeping with their risk profile.1 Basel III guidelines seek to improve the ability of banks to withstand periods of economic and financial stress by prescribing more stringent capital and liquidity requirements for them.2 This is to withstand periods of economic and financial stress and thereby avoid the likes of 2008 financial crisis. We searched for research report on impacts of BASEL III on Indian Banks. But most of the research papers are on the impact of BASEL III on American and European Banks. We decided to do similar study for the Indian Banks. We intend to use the papers of global financial bodies like IMF for our study.