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The IUP Journal of Management Research :
An Analysis of Capital Adequacy in Select Indian Commercial Banks: A Frontier Approach
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The Basel Committee on Banking Supervision (or the Basel Committee) plays a leading role in standardizing bank regulations across jurisdictions. In 1988, the Basel Accord was signed by G10 countries and this was a landmark in the area of capital regulation. The accord was designed to establish minimum levels of capital for the internationally active banks. However, the simplicity and the appeal of regulatory measure encouraged more than 100 countries across the world to apply the regulations in respect to all banking segments. Consequent to the introduction of risk-based capital adequacy norm in the G10 countries, the same was also introduced in the context of Indian banking sector on the basis of recommendations made by the Committee of Financial Sector Reforms (1991).

 
 

Mutual fund is a single, large, professionally-managed investment vehicle that assembles the funds of many individual investors having similar investment objectives and invested accordingly. Whereas Fund of Funds (FoFs) is a typical investment alternative which invests in more than two mutual funds. FoFs as financial instruments started getting traded in the American market since the 1980s. However, in India, SEBI permitted fund-houses to launch FoFs only in the middle of 2003. The first fund of mutual funds in India is FT India Dynamic PE Ratio FoFs launched by Franklin Templeton mutual funds in October 2003. Currently, 44 AMCs and more than 50 schemes are in operation. The fast growth of the FoF industry owes considerably to the high financial innovation that characterizes this market. FoFs offer an opportunity for greater diversification, compared to other instruments. Investing via FoFs provides exposure to the investor in a well- diversified set of mutual funds adopting different strategies. A majority of the FoFs have a diversified approach whereby investment is made in multiple mutual fund strategies, although there are FoFs which are strategy-specific.

 
 

Management Research Journal,An Analysis of Capital Adequacy ,Applying Data Envelopment Analysis (DEA),Public Sector Banks (PSBs) and Non-Public Sector Banks.