Comments of the Reserve Bank of India on the New Basel Capital Accord
The initiatives taken by the Basel Committee in addressing the rigidities in the 1988 Capital Accord by evolving a comprehensive and risk-sensitive New Basel Capital Accord (the New Accord) are timely. The range of options for providing capital would facilitate banks with varying degrees of sophistication to adopt appropriate method with supervisory validation. Further, the emphasis laid on the role of supervisory review process and market discipline, as essential complements to minimum capital requirements would go a long way in enhancing the efficacy of supervision.
