Monday, January 9, 2012

Strengthening the financial system

..........Basel-III norms seek to build a strong banking system with adequate capital, sufficient liquidity in times of stress, and reduced systemic risk in the long run, but these norms are bound to put pressure on the banks to raise capital in uncertain macro-economic conditions, particularly in a period when the government's finances and ability to meet the incremental capital needs are already stressed.

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