Implementation of Basel Capital Ratios by Indian BanksRai A, Viswanathan KG* and White N
Frank G. Zarb School of Business, Hofstra University, Hempstead, NY 11549, USA
- *Corresponding Author:
- Viswanathan KG
221A Weller Hall, 134 Hofstra University
Hempstead, NY 11549, USA
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E-mail: [email protected]
Received date: April 24, 2017; Accepyed date: May 08, 2017; Published date: May 18, 2017
Citation: Rai A, Viswanathan KG, White N (2017) Implementation of Basel Capital Ratios by Indian Banks. J Bus Fin Aff 6: 264. doi: 10.4172/2167-0234.1000264
Copyright: © 2017 Rai A, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
In 2010, central banks, in conjunction with the Basel Committee on Banking Supervision, proposed new capital standards: Basel III, to supplement Basel I and II. Guidelines issued by the Reserve Bank of India required Indian banks to begin following Basel III standards in 2013. Full implementation is expected by 2019. This study examines Basel I, II and III’s impact on Indian banks. We find transitioning from Basel I to Basel II had the greatest impact on foreign banks because the new standards required additional capital reserves for market and operational risk.