Page 205 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes 12.5 Review Questions

1. Discuss capital adequacy in Indian Banking.
2. What is Capital Adequacy Ratio?

3. Write short note on capital fund.
4. What are the various approaches to capital adequacy? Discuss in detail.
5. Explain Basel II norms.
6. What are the minimum capital requirements in Basel II norms?
7. What are the 2 tiers of capital fund? Explain.

Answers: Self Assessment

1. Basel Committee 2. Measures; standards
3. Risk 4. Balance-Sheet
5. Standardize risk based capital requirements for banks across countries.
6. Capital to Risk weighted Asset Ratio 7. New Capital Adequacy Framework

8. Pillars 9. Agreement
12.6 Further Readings

Books Hajols. T. N (2009), “Money and Banking”, Gopaljee Enterprises.

Muraleedharan, D (2009), “Modern Banking: Theory and Practice”, PHI Learning
Pvt. Ltd.

Rajesh, R, Sivagnanansithi, T (2009), “Banking Theory: Law and Practice”, Tata
McGraw Hill Publishing Company Ltd.
Shekhar, K C (2009), “Banking Theory and Practice”, Vikas Publishing House
Pvt. Ltd.

Online links http://www.bankingindiaupdate.com/car.htm

http://moneyterms.co.uk/capital-adequacy/
http://www.stockmarketsreview.com/news/
basel_II_norms_for_indian_banks_20090312

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