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High Powered Committe for Banks to Comply Basel-III Norms
Mar 12, 2014

A high powered committee under Financial Stability and Development Council (FSDC) has been set up to find ways for the banking sector to comply with Basel-III capital norms. The decision was taken at sub-committee meeting of FSDC chaired by RBI Governor Raghuram Rajan. 

The sub-committee discussed the capital requirements of the banking sector over the next five years in view of the Basel III regulations and requirements for supervisory capital and decided to set up a High Powered Inter Regulatory Committee to explore ways of enabling banks to meet these requirements.

Finance Minister P. Chidamabram had said that all banks satisfy the global capital adequacy norms (Basel-III) and the government will keep on providing additional capital to the banks. Among others, the FSDC meeting also discussed implementing non-legislative recommendations of FSLRC and setting up a repository for investors with a single view of all financial asset classes. Also, it discussed about ways for setting up an effective resolution regime for the financial sector. Issues of greater harmonisation of regulations across sectors for similar activities were also taken up.

Released in December, 2010  Basel-III is the third in the series of Basel Accords.  These accords deal with risk management aspects for the banking sector.  Basel iii is the global regulatory standard (agreed upon by the members of the Basel Committee on Banking Supervision) on bank capital adequacy, stress testing and market liquidity risk.   Basel-I and Basel-II are the earlier versions of the same, and were less stringent. Basel-III is a continuation of effort initiated by the Basel Committee on Banking Supervision to enhance the banking regulatory framework under Basel-I and Basel-II.  


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