Assistant Professor, Amity Business School, Amity University, Madhya Pradesh, India
Online published on 31 March, 2016.
The Basel III guidelines are very important in improving the risk management structure and revising components of capital structure of the banks around the world. Basic objective of Basel committee is to regulate the working structure of the banks, provide the standards of funding capital to be taken into consideration by the banks. Now a days fluctuations in the world financial market is very volatile which emphasis the huge importance of these norms with respect to past. The financial crisis that had affected the banks in the later years was reviewed by Basel committee to form some new recommendations for the banks to cope up with the dynamic financial conditions which are incorporated in Basel III norms.
This paper analyze the importance of Basel III norms in Indian Banking System by analyzing the impact of tier 1 and tier 2 capital on various type of risks in Indian Banks.
This paper tries to see the impact of tier 1 and tier capital on market risk, operational risk and credit risk exposure of various public and private banks in India.
Basel III Norms, Indian Banking System, Operational Risk, Risk Management
