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Asian Journal of Research in Banking and Finance
Year : 2017, Volume : 7, Issue : 4
First page : ( 17) Last page : ( 27)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2017.00017.7

Credit risk capital requirements under basel III norms by selected banks in India

Dr. Dewan Sarishma Sharma

Assistant Professor, Khalsa College for Women, Ludhiana, India, sarishma_kaushik@yahoo.co.in

Online published on 17 April, 2017.

Abstract

Paper compares credit risk capital requirements by selected banks under BASEL III norms. Nine banks, three in each category were selected. Data was collected for 9 years i.e 6 years before and 3 years after the adoption of Basel III norms. It was found out that private sector banks are superior on complying with the new norms as compared to nationalised and foreign banks. Enhanced capital requirements have witnessed a positive trend in private sector banks and few cases foreign banks only. It was also observed that selected banks are using standardised approach for calculating their credit risk capital requirements.

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Keywords

Basel III, Credit risk, Standardised Approach, Internal Ratings based Approach.

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