In the last two
decades there has been a remarkable change in the functioning of the banks.
Technological changes, Liberalization since 1990 have introduced contemporary
and complex financial instruments. Due to this the sales has raised in the
financial markets and has resulted in the different types of risks in the
banking sector. In the recent years many financial crisis have raised a
particular challenge for the central banks in different countries. Basel
Committee of Banking Supervision has taken various steps to face these
challenges by introducing Basel I and Basel by making the global banking sector
more resilient. But the late 2000 financial crisis in US highlighted the
loopholes in the Basel II framework in making the banking sector more stable
and sound. Therefore the Basel III norms were introduced by the Bank for
International Settlements. The Basel guidelines has been drafted by the Bank
for International Settlements in agreement with the regulatory authorities of
the global banking sector in fifteen developing countries with the main aim of
prescribing codes of banking supervision and enhancing financial stability.
This research paper analyzes whether Basel III norms are required for the
strong and stable resilient banking sector in India. For this purpose some of
the important facts have been examined like the significant elements of the
Basel III norms, time-line for the implementation of these norms in India,
Basel III banking norms in the Indian Banking System with the Implications of
these norms on the Indian Banking System. - See more at
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