Articles by Soumya Kanti Ghosh

The Basel II norms allow banks to calculate credit risk capital requirements by the standardised or internal ratings based approach. Banks using the latter need to develop methods to estimate its key components, one of which is the loss given default. This article discusses some of the issues in the estimation of the loss given default for corporate exposures in the Indian context.

The RBI faces a dilemma. With the progressive liberalisation of the capital account, there will possibly be increased sterilisation activities by the bank. However, going by the experiences of the east Asian countries, the apex bank will be hard-pressed to ensure the success of such sterilisation. So whether or not to liberalise the capital account will remain an unanswered question.

This study attempts to explore the consequences for India of opening up the capital account. It builds a model to establish a formal link between capital flows and economic growth in the Indian context and reconciles the results from this model with the possible end-use of capital flows into different sectors.