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

Sreejata Banerjee ()
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Sreejata Banerjee: Madras School of Economics

Working Papers from Madras School of Economics,Chennai,India

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.

Keywords: Basel-I; Basel-II; Capital Risk Adjusted Ratio; Non-performing assets; Risk Weighted Assets (search for similar items in EconPapers)
JEL-codes: F33 G21 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2012-05
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Citations: View citations in EconPapers (1)

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