Logo

Synopsis Banking has the prime role in igniting growth and transforming the global economy. Given this scenario, new challenges that emerge in banking, are dealt with in this book.Basically, financial strengthening and deepening, features of a global economy, move in tandem with economic growth, and are the issues to be addressed. The transition to the Basel-2 accord, and the systems of Advanced Internal Rating (A-IRB) for credit risk and Advanced Measurement Approach (AMA) for operational risk are beset with complexities in routine operations. Seccuritization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) was enacted, and deemed the panacea for all NPA problems in banks. Many bankers consider that the Act did not bear fruit. True, the Act made the defaulters panic; its progress was tardy and halting. Yet, it is reassuring to note that NPAs worth over Rs.15000 crores were acquired by the Asset Reconstruction Company (India) limited, and is a good augury. In a global economy, efforts at prevention of money laundering are resisted strongly by organized crime groups involved in drug trafficking, corruption, financial improprieties, terrorism and so on. Primarily, Bancassurance is deemed the solution by both banks and insurance companies for income augmentation in financial retailing operations. The Corporate Debt Restructuring has to fall in line with the guidelines issued by RBI, for bailing out the debts due from medium and large units. Such cases shall invariably fulfill the viability criteria laid down. Contents of this book place these issues in perspective.