The document discusses the history and recommendations of the Narasimhan Committee reforms in India. It analyzes the strengths and weaknesses of the Indian banking system. The key weaknesses included a scarcity of skilled manpower, high costs, and weak risk management. The recommendations included deregulating interest rates, reducing requirements for statutory liquidity, and increasing bank capitalization. It also recommended restructuring the banking system into a few large international banks, national banks, local area banks, and rural banks.
3. The Management Of
Capital
The purpose of this session is to discover why
capital – particularly equity capital – is so
important for financial institutions, to learn
how managers and regulators assess the
adequacy of an institution’s capital position,
and to explain the ways that management can
raise new capital.