Title: Capital adequacy norms: banks compliance with Basel-III norms

Authors: Sahil Singh Jasrotia; Hari Govind Mishra; Roop Lal Sharma

Addresses: Jaipuria Institute of Management, Indore, India ' School of Business, Faculty of Management, Shri Mata Vaishno Devi University Campus, Sub-Post Office, Katra, Jammu and Kashmir – 182320, India ' School of Business, Faculty of Management, Shri Mata Vaishno Devi University Campus, Sub-Post Office, Katra, Jammu and Kashmir – 182320, India

Abstract: The worldwide financial crisis of 2008-2009 had unfavourably affected the banking sector and impelled the Basel Committee on Banking Supervision (BCBS) on amending its existing capital adequacy guidelines in December 2010, termed as Basel-III guidelines, to reduce the chances of happening of any such crisis in the future. In this paper, we empirically analyse whether after complying capital adequacy ratio as per RBI Basel-III norms, the banks are able to take gain investors' confidence into them. This paper analyses whether risk perception of CAR compliant banks has increased or decreased or stagnant in terms of change in advances and profitability for the fiscal years 2015 and 2016. The data being used for the analysis are financial reports (balance sheets and income statement) of the banks and their capital adequacy ratios for the fiscal year 2014-2015 and 2015-2016.

Keywords: capital adequacy norms; Basel-III norms; Basel Committee on Banking Services; content analysis.

DOI: 10.1504/IJEBANK.2020.105414

International Journal of Electronic Banking, 2020 Vol.2 No.1, pp.16 - 37

Received: 05 Jan 2019
Accepted: 26 Apr 2019
Published online: 28 Feb 2020 *

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