Basel Norms and Global Financial Stability: Standards, Supervision, and Systemic Resilience
Overview The Basel Norms form the core of international banking regulation designed to strengthen bank capital, liquidity, leverage constraints, and market discipline to safeguard global financial stability. This article outlines Basel I–III, prudential norms, the effects of liberalization and globalization on stability, linkages to international standards and codes, and the supervisor’s role under the Basel…
Read article Financial Stability: Balancing Development and Resilience in Modern Banking
Executive summary Financial stability requires a careful balance between expanding financial services and safeguarding the system against shocks, with policy frameworks aligning development, regulation, liquidity, and risk management to prevent systemic crises. This article outlines the development–stability trade-offs, key risks and early-warning signals, liquidity management foundations, supervisory approaches, and bank risk management practices in an…
Read article Indian Financial System: Constituents, Regulation, and the Evolution of Bank Supervision
Overview The Indian financial system comprises interconnected institutions, markets, instruments, and regulatory frameworks that mobilize savings, allocate capital, manage risks, and support economic development through efficient intermediation and market-based finance. Its stability and inclusiveness rely on strong, specialized regulators—RBI, SEBI, IRDAI, and PFRDA—coordinating prudential oversight, market conduct, and investor protection to uphold transparency and resilience…
Read article Striking a Balance Between Inflation and Growth: Coordinating Monetary and Fiscal Policies
Achieving low, stable inflation while sustaining robust, inclusive growth requires coherent use of both monetary and fiscal policies within a credible institutional framework. Monetary policy anchors price stability and expectations through interest-rate and liquidity tools, while fiscal policy shapes aggregate demand, public investment, and distributional outcomes—together determining the macroeconomic mix that minimizes sacrifice ratios over…
Read article Fiscal Policy in India: Budgets, Federal Finances, and the Finance Commission
Fiscal policy in India encompasses government taxation, expenditure, and borrowing choices aimed at stabilizing the economy, promoting growth and equity, and allocating resources across competing priorities. It operates through constitutionally structured budgets at the Union and State levels, shaped by fiscal rules and periodic Finance Commission awards to manage vertical and horizontal imbalances. Importance of…
Credit Policy: Objectives, Theory and Practice, Instruments
Credit policy sets the framework through which a financial institution originates, prices, administers, and monitors credit exposures to achieve portfolio-quality, profitability, and compliance objectives in a risk-controlled manner. In banking practice, it translates the Board-approved risk appetite into actionable standards for underwriting, concentration, pricing, collateralization, and remediation across the credit lifecycle. Objectives Theory and practice…
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