Soundness of the financial system participants is a key element of the financial stability framework. In India, the banking system plays a dominant role in the overall financial system. Therefore, one of the core objectives of the banking regulations is to ensure the safety of the banks from the...

Inadequate regulations or failure of regulations to keep pace with financial innovations could have been reasons for financial crises but equally critical contributing factors for financial distress have been inadequate internal control, false assumptions about market and liquidity, and lack of...

Banking regulations intend to protect the interest of depositors, reduce the risk of bank failures, minimize the moral hazard, and strengthen the financial stability by controlling the behavior of financial system participants and by building financial buffers. In countries like India, where...

The theory and practice of central banking reflect a symbiotic relationship that has gradually evolved along with the financial system. An important milestone has been a heightened focus on financial stability and a greater appreciation of the importance of macro-prudential policy in central...

The author identifies key elements of governance, and the potential reasons for failures and highlights that the structure of boards, thrust on the adoption of best practices, and regulatory guidelines are necessary but not sufficient to ensure failsafe governance standards. The author...