Risk Management in Banks

Financial Crisis 2008 put question marks on the management decisions in financial institutions. The organizations realized that there may be incapability to assess the risk exposure and in this way, the area of risk management became important concern for assessing and managing risks around the globe. On the other hand, different organizations have their own well defined and unique culture, and perceived risks according to their own culture and got different results. Therefore, this research has focused to examine the influence of organizational culture on the risk management of Pakistani commercial banks. The study took 19 banks as sample. Primary data was collected through questionnaire by targeting 225 managers around various departments of selected banks. The study concluded that it is necessary for the banks in Pakistan to guide more properly about risk management practices for the better improvement and tackling risk exposures more efficiently. Furthermore, this research has unearth a new understanding about the risk management practices in commercial banks and made valuable addition in the existing theoretical literature in various ways.

This study aims to review; 1) Why is the current risk mitigation model structure in credit guarantee institutions in Indonesia not ideal? 2) What is the ideal structure of risk mitigation model in credit guarantee institutions in Indonesia? The research method used is normative juridical research, which is research focused on examining the application of rules or norms in positive law. The results showed that; 1) The construction of risk mitigation models in credit guarantee institutions in Indonesia is currently not ideal due to several things in handling Failed Banks, such as the handling of Bank Century, namely; (a) Corruption related to Bank mergers; (b) Changes to the Regulations for the Disbursement of Short-Term Funding Facilities (FPJP); (c) FPJP BC that does not have complete collateral requirements; (d) Existence of Accounting Engineering, Fictitious Credit, and other Violations; (e) The embezzlement of foreign currency cash. 2) The ideal construction of risk mitigation models at credit guarantee institutions in Indonesia is carried out in stages; a) Identification of legal risks; (b) Legal Risk Measurement; (c) Legal Risk Monitoring; (d) Legal Risk Control; e) Credit Risk Control; (f) Legal Risk Management Information System; (g) Internal Control for Legal Risks.

The recent financial crisis was one of the main challenges faced by the banking industry in the recent past. The international regulatory authorities have taken many steps to overcome the difficulties faced by the banks over time. Basel norms were one of those and had made many significant changes in the operations of the banking system. This study analyses the impact of Basel III implementation on the public-sector banks in India and how the profitability measures are affected by the change in the CAR of the banks. The study found that Basel III has a significant impact on the CAR, ROA, and ROE of the public-sector banks, and the profitability measures are positively correlated with the CAR of the banks. Also, the public-sector banks in India are facing certain challenges because of the Basel III implementation, especially in factors like capital requirements, liquidity, and profitability.

This article aims to assess the solutions that have been implemented in Vietnam to deal with non-performing loan(s) (NPLs) in the banking system. By trying to build evaluation criteria through a literature review and an expert survey, as well as using the analytic hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS), this research measures the effectiveness of the resolution of NPLs in Vietnam through many factors. The empirical results show that, in the past, the banking system in Vietnam has not dealt very well with bad debt, as it mostly uses traditional methods such as NPL write-offs by loan loss reserves or the liquidation of collateral. Based on our consideration of the NPLs’ resolutions that the Vietnamese banking system has implemented recently, we propose some suggestions to improve the necessary conditions for applying more market-based solutions, such as debt-equity swaps and securitization to thoroughly resolve the NPLs in V...

Intellectual Capital Disclosure is a disclosure or reporting of the intellectual capital of a company. Intellectual capital disclosure is voluntary, so not all companies disclose their intellectual capital conditions. Intellectual capital Disclosure has implications on financial performance and firm value, this is supported by agency theory that intellectual capital disclosure will reduce information assymmetry so that it will minimize agency costs. Intellectual capital disclosure is also a signal that a company has high performance and a good future so that intellectual capital disclosure has the potential to affect financial performance and firm Value. Besides the Intellectual Capital Disclosure in improving the financial performance and firm value, the company also needs funding in the form of money to funds the company survival. Fulfilling funding needs in the form of money must also consider where the fulfillment of these needs comes from. Whether it comes from internal of the ...

This synoptic paper outlines the growth of Indian commercial banking sector and examines impact of Basel norms on the same. In this process, the preparedness of banks and related issues are examined through a survey of bank personnel. The recent trends in CAR and NPA of the banks are also pointed out. A few conclusions are derived and some recommendations are made. The scope for further work is indicated.

Intellectual Capital Disclosure is a disclosure or reporting of the intellectual capital of a company. Intellectual capital disclosure is voluntary, so not all companies disclose their intellectual capital conditions. Intellectual capital Disclosure has implications on financial performance and firm value, this is supported by agency theory that intellectual capital disclosure will reduce information assymmetry so that it will minimize agency costs. Intellectual capital disclosure is also a signal that a company has high performance and a good future so that intellectual capital disclosure has the potential to affect financial performance and firm Value. Besides the Intellectual Capital Disclosure in improving the financial performance and firm value, the company also needs funding in the form of money to funds the company survival. Fulfilling funding needs in the form of money must also consider where the fulfillment of these needs comes from. Whether it comes from internal of the ...

Παραδοσιακά ένας από τους πιο σημαντικούς κλάδους της Οικονομικής Επιστήμης είναι ο νομισματικός κλάδος, ο οποίος ασχολείται με τη θεωρία και πολιτική του χρήματος.
Έμφαση δίνεται στην αναλυτική παρουσίαση των διαφόρων οικονομικών μοντέλων με  μαθηματική απόδειξη των θεωριών και προτάσεων πολιτικής.

In this competitive era, implementations of Basel II norms by Indian banks will make them manage their risks in a better way and in turn make them globally competitive. With this frame, the present research paper highlights the significant aspects of Basel II Accord for the banking system. It discusses the impact of implementation of Basel II norms on the banks in India. As every coin has two sides, the same applies to Basel II Accord as well, and hence the paper outlines the positive and negative impact of implementing Basel II norms on the Indian Banking System.

This study aims to analyze the effect of intellectual capital, firm size and bank liquidity on profitability and firm value. The experiment was conducted in the banking industry listed in Indonesia stock exchange from 2013 to 2015 as many as 40 banks. Data were analyzed using of Analysis of Moment Structures Ver.22. The results showed (1) intellectual capital has a positive and significant effect on the firm profitability and firm value; (2) firm size have a positive and insignificant effect on the firm profitability and firm value; (3) liquidity has a positive and significant effect on firm profitability, but liquidity have a negative not significant effect on the firm value; and (4) the firm profitability has a positive and significant effect on firm value.

4. The most glaring inadequacy has been the absence of a framework to deal with systemic risk. There has been an underlying assumption that strong institutions make a strong system. This has been proved to be fallacious as legitimate actions taken by individual institutions ...

In this paper, we provide empirical evidence on the interest rate sensitivity of the stock returns of the twenty largest US bank holding companies. The main contribution of the paper is the use of survey data to model the unexpected interest rate variable, which is an alternative approach to the existing literature. We ®nd evidence of signi®cant negative interest rate sensitivity during the early 1980s, and evidence of declining signi®cance in the late 1980s and early 1990s. This result is also obtained when using the forecast errors of ARIMA processes to model the unexpected movement in the interest rate.

We study the relationship between banks’ size and risk-taking in the context of supranational banking supervision. Consistently with theoretical work on banking unions and in contrast to analyses emphasising incentives underpinned by the too-big-to-fail effect, we find an inverse relationship between banks’ size and non-performing loan growth for a sample of European banks. Evidence is provided that the mechanism operates through the enhanced organisational efficiency of the supranational set-up rather than incentives alignment among the supervisors and the banks.

Good Morning. It is indeed my privilege to be addressing you today in this Conference in which officials from industry and banking sector are participating. Today, I want to reflect on some of the challenges and dilemmas that we face as regulators of the banking system. A few of these challenges and dilemmas are in the context of the rapidly evolving regulatory landscape in the aftermath of the crisis, very aptly reflected in the theme of this Conference “Global bankingParadigm shift”.

This paper seeks to examine and evaluate the strategies employed by the Irish banking system to clean up bank balance sheets by reducing persistently high and problematic Non-Performing Loan ratios. The input and influence of EU policy makers is also considered and discussed. The purpose of this research is to address an existing research gap regarding the impact of high Non-Performing Loan ratios across Europe in the wake of the global financial crisis of 2008. Most specifically, the researcher seeks to examine and explain the Non-Performing Loan predicament from Ireland’s perspective, and evaluate the major Non-Performing Loan rectification efforts which have been employed. The existing and relatable literature is predominantly descriptive and cross-sectional. There is a dearth of qualitative studies on matters regarding problematic Non-Performing Loan ratios in Ireland and across Europe. The researcher has adopted a qualitative research approach. A purposive sample of senior-rank...

Central Bank supervision is one of the pillars of capital regulation. Based on a unique database built using supervision data from the Central Bank of Brazil, we evaluate the effectiveness of the Central Bank's supervision over banks given the Central Bank's proprietary credit rating and signaling requests for higher capital buffers. We also examine the main determinants of capital buffer management in addition to supervision. We find evidence that (i) Brazilian Central Bank supervision imposes excess capital buffer needs on banks, especially small and midsize banks; (ii) market discipline may play no role in driving capital ratios; and (iii) the business cycle has a negative influence on bank capital cushions, suggesting pro-cyclical capital management. We conclude that supervision plays a major role in markets where market discipline is weak and for smaller banks which act on pro-cyclical way.

This study aims to know and analyze and influence of intellectual capital on corporate performance, analyze the influence of intellectual capital through corporate perform to company value, analyze the influence of intellectual capital to company value, analyze the influence of banking risk through corporate, analyze the influence of banking risk through corporate performance to company value , analyze the influence of banking risk to company value, and analyze the influence of corporate performance value of company. This research is in the form of explanatory research by pooling the data used. This research was conducted on banking sector companies in Indonesia. Observations were made for four consecutive years such us: 2012-2016. Method of analysis of data used models of structural equation modeling (SEM). Result of this study shown: 1) Intellectual capital has a positive and significant effect to corporate performance, 2) Intellectual capital has no significant effect on firm value through corporate performance, 3) Intellectual capital has a positive and significant effect to company value, 4) Banking risk positive and significant impact on corporate performance 5), banking risk has a positive and significant impact on the corporate value through corporate performance, 6). Banking risk has a positive and significant impact on corporate value, 7) Corporate performance has a positive and significant impact on firm value.

This paper has been published under the same title as a chapter in the book "Basilea, la crisis financiera y la institucionalidad regulatoria en Chile: propuestas de reformas" (Basel, the financial crisis and regulatory institutionality in Chile: proposals for reforms) (2015) edited by Christian Larraín. The book was financed by the Association of Banks and Financial Institutions of Chile. The author would like to thank Christian Larraín and Luis Opazo for their excellent comments and suggestions and Brian Cevallos Fujiy for his valuable research assistance. Any errors in the paper are the author's sole responsibility.

The recent financial crisis made the banking sector more vulnerable to shocks. The system was characterised by weaknesses: too much leverage in the banking; not enough high quality capital to absorb losses and excessive credit growth based on underwriting standards and under pricing of liquidity. This article is about a new accord Basel III and the view of this framework. Basel III will be finalized before November 2010, and will be implemented by the end of 2012. Basel III is going to be implemented in the United States. All G-20 countries should adopt progressively this capital framework. The Basel Committee on Banking Supervision and national authorities should develop and agree a global framework for promoting a stronger liquidity in financial institutions. The reform program is to raise the resilience of the banking sector through promoting more sustainable growth, both in the near term and over the long therm. The initiatives of Basel Committee will develop a set of reforms based on four steps: public consultation, impact assessment, overall calibration and macroeconomic impact assessment over the transition period.

The Basel Committee on Banking Supervision (BCBS) set the first of capital accords in 1988, called the Basel I. Due to the dynamic changes in the world of financial system Basel I gave way to Basel II. Basel II plagued with the problem of pro-cyclicality paved the way for Basel III. India adopted Basel III norms in 2012. The present paper studies the impact of Basel III on India. In the short run, it will lead to a reduction in profitability of banks, curtailed credit to the economy and it is accused of being a needless burden on the Indian banks. But in the longer run, it will keep India integrated with the rest of the world. It will make the Indian financial system stronger, more stable and sound. It boils down to a trade-off between short-term costs and long run growth benefits.

This paper investigates the impact analysis of infrastructural renewal on Nigerian economy. The data used were time series between 1981 to 2017 for government spending on road, communication, education and private capital were used for the analysis. The sources of the data are from National Bureau of Statistics, Central Bank of Nigeria and World Development Index. In order to avoid spurious results, Augmented Dickey Fuller's stationarity test and Johansen's co-integration test was conducted while Vector Error Correction Model (VECM) was employed as methodology to analyse the results. Findings show that government spending on infrastructure has long-run relationship with Nigerian economy. Government expenditure on road and communication has positive and significant impact on Nigerian economy. Government expenditure and private investment has negative but significant impact on Nigerian economy. The study recommends that government should improve expenditure on road and education in order to boast economy and bring the economy to path of progress and prosperity. Since the government alone cannot provide all infrastructures for the citizens, it should partner with private sector using Public Private Partnership in the provision of infrastructure amenities in order to increase economic growth in Nigeria.

In 1988, an agreement was reached in Basel to set the common requirements of bank capital towards promoting the soundness and stability of the international banking system. Banks are required to hold capital in proportion to their perceived credit risks. In
June 2006 Basel Committee on Banking Supervision issued a comprehensive document on New Capital Adequacy Framework to replace the 1988 Basel Accord and to foster a strong emphasis on risk management and to encourage ongoing improvements in banks’ risk assessment capabilities. The paper examines the potential impact of Basel II on the banking sector of Bangladesh. A survey is conducted to find out the present status of the implementation of Basel II and their possible impact and reaction of the banking community. The result shows that the banking sector of Bangladesh is taking necessary steps to comply with Basel II requirement under the guidelines of Bangladesh Bank. The capital requirement under Basel II regime increased due to additional burden of capital from Market Risk and Operational Risk. There are many possible negative impacts of an unchecked implementation of Basel II. However, Basel II is here to stay and the competitive forces will compel banks to follow the example. The option here is to decide what form of the Basel II norms should be applied and to what extent to ensure the survival and growth for the developing economies. Ultimately, the norms are for strengthening the banking systems globally and this objective should not be lost. Bangladesh Economies need to be prepared and to adapt to the changing global conditions and to adapt the norms to their own advantage.

The global financial crisis highlighted clearly the need for better regulation and supervision of the financial sector. As far as deposits, citizens suddenly realized that different levels and forms of depositor protection co-existed in the EU. Because of the possible spreading of bank runs all over the world, deposit insurance schemes (DGSs) became more common, and also countries where they did not exist, they began to set up them, like Australia and New Zealand. On the other side, in countries where the schemes were already adopted, an overhaul of the main characteristics of these schemes started. In this research, differently from previous papers, we want to answer two main research questions. The first one considers the fact that the new European Directive requires that DGSs' funding arrangements are risk based pricing systems able to minimize the moral hazard risk. This is something new which tend to make banks evaluated/supervised by the DGSs similarly to the firms evaluated by the banks when the latter lend money to the former. More importantly, the second research question aims to analyze the main characteristics of a prospective harmonized European DGS, by comparinga how the US Federal Deposit Insurance Corporation (FDIC) works in the U.S.

In the financial crisis of 2007, many banks with high level of Non-performing loans (NPLs) found their sources of capital dried up, which occurred because of bad management. Huge amounts of NPLs imply both a lack of management methods and lack of capital. Also, high NPL levels have resulted to negative effects to banks’ lending activity, making bank officers-managers more concern for the future of the whole banking system. The purpose of this study is twofold. First, to present some NPL management methods that already exist in the literature and second, to make a clear distinction between the ex-post and ex-ante management of NPLs. I tried to collect in one paper what other researchers suggested for the proper management and fight against NPLs for different kinds of banking systems around the world. Hopefully, by examining these methods, banks will be able to cope with the problem of NPLs.

 Abstract— The banking industry is the lifeline of any economy. It is one of the most important pillars of the financial sector. Development of any country is highly dependent on the performance of the banking industry. For an economy to remain healthy and going, it is important that the banking system grows fast and yet be stable. Due to the importance in the financial stability of the country, banks are highly regulated in most of the countries. The collapse of financial institution in one country can also lead to sequential collapse of financial institutions in other countries, warranting that global minimum prudential levels shall be implemented. More so, crosscountry discrepancies in financial regulation have significant ramifications for the competitiveness of financial firms.

The uncorrelated level of economic prosperity with the vast amount of budgetary allocations in terms of expenditure in Nigeria has raised major concerns and occupies the center of literature debate over time. The dilapidated state of social and human capital in the economy despite its large foreign earnings and expended periodic expenditure over the last three decades has accentuated the need for a theoretical and empirical explanation for the retrogressive advancement of the Nigerian economy. Based on this, the study attempts to investigate the impact of both government recurrent and capital expenditure on growth performance using an econometric analysis based on Johansen technique for the period of 1970-2009. The study found the component of total expenditure impacting negatively (except education and health) and insignificantly on growth rate; further diagnosis test reveals capital expenditure may likely induce significant impact on growth rate in the long-run. Notable recommendations include, proper management of capital and recurrent expenditure, proper surveillance and quantification of capital spending in order to boost social and human capital, and development of sound institutions void of political influences.

The Indane gas company reforms have deregulated the market to a great
extent. It has become necessary to design and execute the best customer
oriented practices and to internalize them for providing enhanced
satisfaction to the customer through the employees. Customers’ service is
not merely the compliance with the government’s policies or the mechanical
adherence to the time frame of services. It is a philosophy and an attitude of
professional commitment, which believes in the ultimate satisfaction or each
customer ‘wants’.
Service marketers have really understood that competition can be well
managed by differentiating through quality. Significance of service lies in
customer service management. In this the completive environment, service
quality has become the success mantra in all service sector. Keeping this in
mind, this study has been conducted at Salem city to identify the service
quality of Indane gas. The result indicates that customers are not highly
satisfied with the service provided by the Indane gas. So the company took
some serious action to improve the service quality.

The study investigated the implications of public expenditure pattern particularly in road infrastructure, agriculture sector, road construction, and education sector on employment rate in Nigeria for a period of 35 years. The study is based on OLS research analysis using time series data from 1980-2014. The results are based on Augmented Dickey-Fuller Unit Root Test, Co-Integration Result (Trace), and Vector Error Correction Model. The overall result revealed that agriculture expenditure (AGREX) and road construction expenditure (RCEXP) have significant negative effect on rate of employment (EMPR) while transport expenditure (TREXP) and education expenditure (EDEXP) have positive significant effect on rate of employment (EMPR). The study recommends, among other suggestions, that there should be increased capital expenditure on productive sectors such as road construction, education, transportation and agriculture while being judiciously utilized to guarantee their desired contribution in enhancing the provision of employment opportunities in the country.

Purpose -This paper aims to highlight the new regulatory framework established by Basel III. Design/methodology/approach -This paper provides a critical review of the existing literature concerning bank supervision, while providing an overview of the transition from Basel I to Basel III rules and critical appraisal of the current regulatory framework. Review of the existing literature. Findings -Basel III introduces new measures in favor of bank stability and in order to mitigate the propagation of financial shocks. But on the other hand, the new regulatory framework adds an extra burden to banks' business plans, affecting credit policies and thus, the real economy. Another issue that is not properly addressed is the rising of financial innovations that are able to pass by the new regulations. Overall, Basel III rules are moving to the right direction, but need to stay always up-to-date in order to catch up with the modern ever-evolving financial system. Pros and cons. Need for improvement. Originality/value -The paper presents an up-to-date review of Basel rules with future prospects.

Purpose -This paper aims to highlight the new regulatory framework established by Basel III. Design/methodology/approach -This paper provides a critical review of the existing literature concerning bank supervision, while providing an overview of the transition from Basel I to Basel III rules and critical appraisal of the current regulatory framework. Review of the existing literature. Findings -Basel III introduces new measures in favor of bank stability and in order to mitigate the propagation of financial shocks. But on the other hand, the new regulatory framework adds an extra burden to banks' business plans, affecting credit policies and thus, the real economy. Another issue that is not properly addressed is the rising of financial innovations that are able to pass by the new regulations. Overall, Basel III rules are moving to the right direction, but need to stay always up-to-date in order to catch up with the modern ever-evolving financial system. Pros and cons. Need for improvement. Originality/value -The paper presents an up-to-date review of Basel rules with future prospects.

Purpose -This paper aims to highlight the new regulatory framework established by Basel III. Design/methodology/approach -This paper provides a critical review of the existing literature concerning bank supervision, while providing an overview of the transition from Basel I to Basel III rules and critical appraisal of the current regulatory framework. Review of the existing literature. Findings -Basel III introduces new measures in favor of bank stability and in order to mitigate the propagation of financial shocks. But on the other hand, the new regulatory framework adds an extra burden to banks' business plans, affecting credit policies and thus, the real economy. Another issue that is not properly addressed is the rising of financial innovations that are able to pass by the new regulations. Overall, Basel III rules are moving to the right direction, but need to stay always up-to-date in order to catch up with the modern ever-evolving financial system. Pros and cons. Need for improvement. Originality/value -The paper presents an up-to-date review of Basel rules with future prospects.

This research aims to study the correlation between risk variables on stock return of the companies in the index of the most active firms listed on Tehran Stock Exchange. For this purpose, the correlation between firm size and stock return of the companies in the index of the most active firms listed on Tehran Stock Exchange for the period from 2001 to 2011 has been studied. To take a sample, the index of 50 most active companies has been used. Thereafter, the regression model has been applied to estimate the correlation of the firm size with the stock return of the companies in the said index. The results show that there is a positive and significant (weak) relation between firm size and stock return when fluctuations in the index are not considered. When the return on the index is inserted in the model, this relation remains positive and significant. Moreover, this research shows that the return on the index of 50 most active companies has not effect on the firm size and fluctuations in stock returns (β). The most important concept in making decisions on investment is the issues of risk and return. Any share or portfolio of shares purchased, maintained, and sold within a specified period brings the owner a specific amount of returns including change in price and profits arising out of ownership (Rai and Saidi, 2004). On the other hand, return of stock varies in different periods, and has not fixed and monotonic trend. Therefore, fluctuations and

This article aims to first build a deeper understanding of the emergence of Basel banking norms (Basel I), and the transition to each of the subsequent regulations (Basel II and Basel III). The primary purpose of developing this understanding is to further analyze the extent of effectiveness of the Basel norms. To explore how such regulations impact an economy, we have specifically looked at four economies of the world, which are geographically apart, in this context. The idea here is to study how, for instance, banking institutions have shaped up to these norms – and whether the effects were favorable or adverse. We then conclude by conceptually looking at the future direction of regulations such as the Basel norms in the banking industry.

This paper aims to first build a deeper understanding of the emergence of Basel banking norms (Basel I), and the transition to each of the subsequent regulations (Basel II and Basel III). The primary purpose of developing this understanding is to further analyze the extent of effectiveness of the Basel norms. To explore how such regulations impact an economy, we have specifically looked at five economies of the world (including India), which are geographically apart, in this context. The idea here is to study how, for instance, banking institutions have shaped up to these normsand whether the effects were favorable or adverse. We then conclude by conceptually looking at the future direction of regulations such as the Basel norms in the banking industry.

The structural relationships among bank capital and risk taking are empirically examined by utilising unit root tests and Granger causality tests using the time series data. The Granger causality test results are not very robust with respect to different types of banking institutions, risk variables (NPL and RWA) and time period. With merchant banks and finance companies aggregate data, there appears to be an absence of a Granger causality effect in the Malaysian banking sector. The evidence for Granger causality running from capital to risk or risk to capital appears to be statistically significant when the test is performed using the commercial bank aggregate data. Our results also show that there is no strong indication that using non-performing loans implies likelihood of finding a significant relationship. Finally, the evidence of lead-lag relationship between capital and risk is generally weak before the1997-98 banking crisis.

The increased awareness and concern of people, researchers and decision makers for the maintenance and enhancement of services provided by different industry /Business has significantly widened the scope of information needs for idea management system to develop Innovation. Innovation implies newness. Innovation can be defined as the " main driver for companies to prosper, grow and sustain a high profitability " , (Fredberg et al., 2008). This paper attempts to understand how company can innovate and how can it manage its innovations? The objective of this paper was to search for a meaningful measure of innovation by focusing on the "common denominator" of what an Idea Sirjee: People the source of Innovation. This paper will also help you improve your ability to manage creativity, innovation and change in business, education, healthcare, government, and in any other complex organization or institution by diagnosing potential innovation failures before they can occur. While we see several examples of technological innovation, we are not focused on the management of technology. Instead, we focus on something much more powerful: understanding and managing the people engaged in creation, innovation and positive change through a proper system. 2. How an idea management system (IMS) is a formal process, by which generated ideas can be recorded, filtered and selected for implementation.

The study focuses on comparing the cross-selling practices in public sector and private sector banks in Mysore. The study is been conducted to identify the existing cross-selling practices in public and private sector banks and to know the hurdles faced by banks in cross-selling and initiatives taken by banks for improving effectiveness of cross-selling. The study was limited to bank employees indulging in cross-selling practices across the banks in Mysore. A total of 6 banks were considered; 3 from public sector and 3 from private sector banks. The number of employees who were questioned were totally 90. The banks were chosen after studying the background of the banks. The study provided various details like banks perceived benefits, the initiatives taken, the hurdles faced and the effectiveness.

This study examines both the quantity and price of risk exposure for different segments of ®nancial intermediaries. Overall, we ®nd evidence of market segmentation in the U.S. ®nancial services industry. Speci®cally, we ®nd that securities ®rms, consistently over the sampling period 1974±1994, had the most market risk exposure with the lowest market risk premium. Banks' market risk¯uctuated over the sampling period. Banks increased their market risk-taking after the shift in monetary target in October 1979 and the announcement of the risk-based capital requirements in July 1988. The banks' market risk became the highest and insigni®cantly different from securities ®rms'. The results are consistent with the moral hazard argument; that is, banks took on more risk to take advantage of government guarantees as their charter value declined. Banks were subject to relatively high interest rate risk premium. However, in response to increased interest rate volatility and decreased charter value after October 1979, banks (while they increased their market risk exposure) lowered their interest rate risk exposure to an insigni®cant level. The result suggest that the federal safety net may have been perceived by the market as covering only market risk but not interest rate risk. Overall, we ®nd little evidence of interest rate risk exposure, suggesting the prevalence of hedging programs using interest rate derivatives. The interest rate risk premiums, unlike the risk exposure, differ across ®nancial intermediaries.

Capital markets typically involve issuing instruments such as stocks and bonds for the medium-term and long-term. In this respect, capital markets are distinct from money markets, which refer to markets for financial instruments with maturities not exceeding one year.

Fiscal policy in India is the taxation policy through which government generates funds for public expenditure. Development requires change process, which comes through effective governance. Fiscal policy aims in growth, equity and stability factor of the country. Present article argues whether prevailing system of fiscal measure in the country are adequate for development. The paper also suggests valuable measures to the government for making fiscal measures of the country more efficient and effective, for growth and development.

Basel norms are a set of international banking regulations formulated by the Basel committee on bank supervision, which set out the minimum capital requirements to sustain banks the world over. The committee operates from Basel in Switzerland. The changes in the rules for raising Basel III-compliant capital announced by India's central bank in September 2014 are "credit positive" as they make it easier for banks to raise funds and attract more investors, The Reserve Bank of India on Sept. 1, 2014 cut the minimum maturity for Tier 2 capital that banks can issue to five years from 10 years. It also allowed retail investors to buy Tier 1 capital.  This regulation ensures the soundness of the banks by focusing on the need, genesis and development of the concept of capital adequacy ratio (CAR) in banking and are discussed and linked up to BASEL III norms . The paper provides an outline of the basics of BASEL III norms and its impact on CAR This newest accord seeks to improve the banking sector’s ability to deal with financial and economic stress, build up risk management and the bank’s transparency. The BASEL III is to be implemented by banks in India as per the guidelines issued by RBI from time to time. This paper has briefly described the impact of BASEL III on the capital adequacy ratio of banks.