Category: Personal Banking

Tips to protect against On line Fraud and Phishing Variations

For safer online transactions the first thing we have to learn is that to be suspicious of anything that comes to your inbox. Sometimes, we check the Spam mails and suddenly there could have been any mail containing which demands sharing of information about your bank accounts, and even passwords and other financial transactions indications.…

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Basel Committee guidelines on back testing and stress testing

Basel Capital Accord OF 2003 released by the Basel Committee on Banking Supervision (BCBS) envisages a three-pillar approach to risk management under which the first pillar signifies total minimum capital requirement for credit, market and operational risks. To determine the minimum capital requirement for an approach, subject to certain minimum conditions and disclosure requirement may…

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Know Your Customer (KYC) guidelines for non-banking financial Institutions (NBFCs)

Banks are advised to constitute an ad hock committee to undertake procedures and performance audit on public services rendered by them. The uniform margin to be applied on all advances against shares/financing of initial public offerings/issues of guarantees raised from 40 percent to 50m percent.  Banks are advised to constitute a Special Committee to monitor…

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Should the Indian banking sector approach the issue of its global aspirations

In a closed economy, investments are limited by the savings. A closed economy can invest only what it saves. Trade in capital allows cross border separation of savings and investment. Investments can be higher than savings by borrowings from abroad. As a developing economy offers higher returns to capital than a developed economy, removal of…

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Importance of customer due diligence as a critical element in the effective management of banking risks

Term ‘Due diligence, ’ is increasingly becoming popular in the financial world. More and more financial analysts are realizing the importance of due diligence process in identifying the risks involved in various transactions. Merchant bankers/ investment bankers engaged in the activities of managing public issues. Acquisition and investment activities have fine-tuned due diligence processes and…

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Basel II & Risk Management

The Basel Committee on Banking Supervision [BCBS], is a committee of central banks and bank supervisors / regulators from major industrialized countries, that meets every three months at the Bank for International Settlement [BIS] in Basel, to provide broad policy guidelines that each country’s supervisors can use to determine their own supervisory policies. The Basel Committee…

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Basel frame work impact on the banks

In addition to the work on capital standards, particular supervisory questions which the Committee has addressed include the supervision of bank’s foreign exchange positions, the management of banks international lending (i.e. country risk ), the management of bank’s off –balance –sheet exposures, the prevention of criminal use of the banking system, the supervision of large…

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Basel framework on capital adequacy

1.    INTRODUCTION The Basel Committee was established as the Committee on Banking Regulations and Supervisory  Practices by the Central Bank Governors of the Group of Ten countries  at  the end of 1974  in the aftermath  of serious disturbances in International  Currency and Banking markets. The first meeting took place in February, 1975 and meetings have…

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