ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Fruitless Pursuit of Capital Adequacy

The government needs to rethink its priorities in regard to financial sector reform in general and capital adequacy norms for banks in particular. The stringent capital adequacy norms should be postponed and the focus of reform of the banking system should shift to greater organisational managerial and administrative freedom as a prerequisite for genuine improvement of banks' balance sheets.

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