The paper introduces a different viewpoint towards capital adequacy measurement of Indian commercial banks by applying Data Envelopment Analysis (DEA). DEA investigates the relative adequacy of core capital of the banks with respect to their risk-weighted assets corresponding to the three risk...

‘Fair value' of an asset or a liability refers to the amount at which such an asset could be exchanged, or the liability settled, between knowledgeable, willing parties, in an arm's length transaction. Although the growing irrelevance of historical cost-based accounting numbers in the...