Many banks in developing countries struggled very hard to implement Basel 2. We are now in Basel 3 and already going to Basel 4. Both from the perspective of the regulator and operators, I hear groanings everywhere. Are you able to provide some guidance and clarity as to how LDCs can navigate this curve?
Yes, its good to adopt basel norms in banking management, as it shows clarity between secured and unsecured loans and necessity of capital management norms to face liquidity or interest challenges.
Thank you.
The acceptable range for Cronbach alpha test of reliability is 0.6-0.7.
Loans are major sources to earn income by the banks across the globe. These loan assets have been becoming bad loans defaultly and it leads to get both liquidity risk and interest rate risk. These nature of risks will affecting the liquidity and profitability of the bank. BASEL 3 norms will support to monitor and curb the effect of risks and also assists to strengthen the banks functioning. As per your question I hope that it may useful to you.
Thank you Devendra Malapati for your useful contribution to the subject. Highly appreciated especially the link to liquidity and interest rate risk.