The financial sector reforms have brought about significant improvements in the financial strength and
the competitiveness of the Indian banking system. The prudential norms, accounting and disclosure
standards, risk management practices, etc are keeping pace with global standards, making the
banking system resilient to global shocks.
The consolidation and convergence of banks in India has, however, not kept pace with global
phenomena. The efforts on the part of the Reserve Bank of India to adopt and refine regulatory and
supervisory standards on a par with international best practices, competition from new players,
gradual disinvestment of government equity in state banks coupled with functional autonomy, adoption
of modern technology, etc are expected to serve as the major forces for change.
In the emerging
scenario, the supervisors and the banks need to put in place sound risk management practices to
ensure systemic stability.
The face of banking is changing rapidly. Competition is going to be tough and with financial liberalisation under the WTO, banks in India will have to benchmark themselves against the best in the world. For a strong and resilient banking and financial system, therefore, banks need to go beyond peripheral issues and tackle significant issues like improvements in profitability, efficiency and technology, while achieving economies of scale through consolidation and exploring available cost-effective solutions.
In India money market is regulated by Reserve bank of India (www.rbi.org.in) and Securities Exchange Board of India (SEBI) [www.sebi.gov.in ] regulates capital market. Capital market consists of primary market and secondary market. All Initial Public Offerings comes under the primary market and all secondary market transactions deals in secondary market. Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Secondary
market comprises of equity markets and the debt markets. In the secondary market transactions BSE and NSE plays a great role in exchange of capital market instruments.
BIBLOIGRAPY
Aai, K., The Optimal Insurance Against Consumption Price Risks, Hitotsubashi Journal of Economics, Vol. 35, No. 1, June 1994.
Adams, T.F.M. and Hoshii, Iwao, A Financial History of the New Japan, Kodansha
International Ltd., Lokyo 1972.
Ambrose, J.M. and Carroll, A.M., Using Best‘s Ratings in Life Insurer Insolvency
Prediction, Journal of Risk and Insurance, Vol. 61, No. 2, June 1994.
American Council of Life Insurance, Life Insurance Factbook, Washington D.C.,
1990.
Anyahwu, J.C., Housing Finance in Nigeria: The Role of Financial Institutions, Prajnan, Vol. XIX, No. 4, Oct-Dec. 1990.
Baltensperger, Ernst, Alternative Approaches to the Theory of the Banking Firm,
Journal of Monetary Economics, Vol. 6, 1980.
Bandyopadhyay, Tarun and Ray, Indrajit, The Role of IDBI in the Correction of Regional Imbalances in West Bengal: An Empirical Assessment, Prajnan, Vol.
XX, No. 3, July-September 1991.
Banerjee, Bhabaotosh, Capital Structure in Public Enterprises: The Role of Banking
and Financial Institutions: An Analysis, Journal of Accounting and Finance, Vol.
III, No. 1, Spring 1989.
Banerjee, G. and Banerjee, S., Borrowing from Financial Institutions, UDH Publishing
House, Delhi.
Banerjee, G., Law Relating to State Financial Corporations, UDH Publishing House,
Delhi.
Bank for International Settlement, Recent Innovations in International Banking, April
1986.
Bank Profitability, Statistical Supplement, Financial Statements of Banks 1981-89,
Organisation for Economic Co-operation and Development, Paris 1991.
Barkovec, J.A., et al., Race, Redlining and Residential Mortgage Loan Performance,
Journal of Real Estate Finance and Economics, Vol. 9, No. 3, November 1994.
Barth, J.R., Panel Discussion of The Future of the Financial Services Industry:
Improving Depository Institution Efficiency in a Competitive Environment, Journal
of Banking and Finance, Vol. 17, No. 2-3, April 1993.
Barth, James, R., Brumbaugh, R. Dan, Jr. and Latin, Robert E., Banking Industry in
Turmoil: A Report on the Condition of the U.S. Banking Industry and the Bank Insurance Fund, U.S. Government Printing Office, Washington D.C.,
December 1990.
Basch, Antonian, Financing Economic Development, New York 1964.
Bauer, P.W., The Efficiency of Financial Institutions: Discussants Comment on Berger
et al, and English et al, Journal of Banking and Finance, Vol. 17, No. 2-3, April 1993.
Bayliss, B.T. and Philip, A.A.S. Butt, Capital Markets and Industrial Investment in
Germany and France, Saxon House, Westmead, England, 1980.
Bell, Clive, Interactions between Institutional and Informal Credit Agencies in Rural
India, The World Bank Economic Review, September 1990.
Beneficial Corporation Annual Report 1990, Peapack, New Jersey.
Benston, G.J., International Harmonization of Banking Regulations and Cooperation
among National Regulators: An Assesment, Journal of Financial Services Research,
Vol. 8, No. 3, September 1994.
Benston, George J. and Kaufman, George G., Risk and Solvency Regulation of Depository
Institutions: Past Policies and Current Options, Saloman Brothers‘ Centre for the Study of Financial Institutions at the Graduate School of Business
Administration
of New York University, New York 1988.
Berger, A.N., Hunter, W.C. and Timmes, S.G., The Efficiency of Financial Institutions:
A Review and Perview of Research Past, Present and Future, Journal of Banking
and Finance, Vol. 17, No. 2-3, April 1993.
Bernstein, B. and Boughton, J., Adjusting to Development: The IMF and the Poor,
Finance and Development, Vol. 31, No. 3, September 1994.
Bhabatosh, Dutta, Essays on Plan Economics, Chapter 12.
Bhatia, V.V., Structure of Financial Institutions, Vora and Company, Bombay 1972.
Bhattacharyya, S.K., Are Financial Institutions Really Risk Averse? Vikalpa, Vol.
13, No. 2, April-June 1988.
Bhole, L.M., Financial Institutions and Markets: Structure Growth and Innovations,
Tata McGraw-Hill Publishing Co. Ltd.
Bibliography : Financial Institutions & Services
Literature review
Title: Indian Financial System Publisher: Himalaya
Author: Dr G Ramesh Babu Edition: Students Edition Edition Number: 1
Critics who previewed this presentation before its going to press are of the Opinion that after going through the classic gem. One does not have to delve into any of its kind. Because, it offers all one needs to know both
theoretically and practically about: (I) FINANCIAL INSTITUATIONS; (II) FINANCIAL MARKET; and (III) FIANCIAL SERVICE, besides the
introductory very INDIAN FINANCIAL SYSTEM itself.
It covers all the institutions that deal with public fianc and recommends itself best to anyone scholar or practitioner in ay capacity wanting to have masterly grip on the subject.
Title: Indian Financial System Textbook Publisher: IK International Pvt. Ltd.
Author: D K Murthy, Venugopal Edition: Paperback
Indian Financial System explains the changing dimensions of the country's financial set-up owing to the financial sector reforms. The book assesses the Indian financial system in the light of contemporary changes that have taken place in financial markets, mutual funds industry, insurance and banking sectors etc. The book provides a sound theoretical foundation, giving a clear conceptual understanding of the subject. It gives a complete picture of the structure,
operations and functions of various components of the Indian financial system.
Every chapter in the book begins with the objectives of learning and is followed by objective, analytical and essay-type questions. The book would be useful for graduate and postgraduate level students of commerce, management and
economicsContents:
* Financial System
* Commercial Banks
* Financial Institutions
* Regulatory Institutions
* Banking Innovations
Title: Indian Financial System Publisher: Pearson
Author: Bharati V Pathak
About the Book:
The Financial System is the mirror reflection of an economy. The performance of any economy to a large extent, is dependent on the performance of the
financial institution. In such an environment the agility to adopt to emerging dynamics is the deciding the growth of sound financial system. The rules of the game is on Mergers and Acquisitions. The financial services industry is seeing a consolidation, with all segments of players offering of a plethora of services.
In the post liberalisation era, the finance sector is witnessing a complete metamorphosis. Deregulation measures have included the freeing up of direct controls over ownership, liberalising interest rates and credit allocation,
deregulating foreign exchange transaction controls, freeing up the entry of new firms, and expanding and broadening the base of the banking system both for nationals and international business ventures. At the same time, non-banking financial institutions, securities markets and money markets have developed to mobilize and allocate savings. Experience suggests that financial liberalisation needs to be undertaken alongside macro-economic reform.
In this context, "Fundamentals of the Indian Financial System" is a subject that is assuming greater importance and is bound to be one of the key topics of discussion during the next two/three decades. This is, as it should be, to
consider what sorts of financial institutions will be best suited to be economic environment in the 21st century.
The Debt Market.
New Financial Instruments.
Disinvestment of Public Sector Undertakings.
The Derivatives Market.
Credit Rating.
Factoring and Forfaiting.
Development Financial Institutions.
Banking and Non-Banking Institutions.
Mutual Funds.
Insurance.
Financial Regulation.
AbouttheBook:
The process to restructure Indian financial system launched since 1991 has been accompanied by a surge of financial particularly private flows. Driven by a number of internal and external factors these private financial flows pose risks to financial systems. Several countries that have received substantial financial flows have faced costly banking crises. The present book attempts to study the impact of international financial flows particularly private flows on Indian financial system. Based on the analysis of data, the book attempts to spell out what restructuring is needed in Indian financial system to attract and sustain inflows and to avert the risks posed by inflows to India. It holds
various policy implications to restructure Indian financial system in response to financial flows and should be of interest to policy makers and
academicians. This book intends to enlighten the readers regarding: . Changing nature and composition of international financial flows. .
Issues/concerns raised by private, international flows. . Trends in private non-debt flows to India since 1990s. . Empirical work on impact of financial flows on financial system. . Indian initiatives to restructure its capital market and banking sector in 1990s. . Policy implications on restructuring Indian financial system in response to private financial flows.
Book Details
Title: Restructuring Indian Financial System
Publisher: Anmol Publications Author: Nidhi Jain
ISBN: 8126111119
AbouttheBook:
Indian financial system is one of the largest in the world with a broad variety of banking, financial and capital market institutions and instruments. What kind of structural changes in the Indian financial system are required to cope with an increasing complex and faster moving international economic and financial environment? Some of the important issues in the context of financial sector are: (1) Is there any need of heavy reforms in financial sector along with the adjustment process?; (2) Is it necessary that the reforms should be supplemented by significant inflow of foreign direct investments?; (3) Is the internal adjustment progress (for the promotion of exports) more important than the package of DFL, imported technology and enhanced productivity?; (4) Is there any relationship between inefficiency and adjustment process'; and, finally, (5) Is technical process pre-requisite for the success of adjustment process? Adequate attention to these may effectively take care of the distortions on the financial side and the process of reforms may be smooth, politically and administratively sustainable and bring the desired, effective and quick results by making the Indian financial system vibrant and competitive, a necessary concomitant of trade and industrial policy liberalization. Indian Financial System analyses the initiatives aimed at developing a healthy, efficient and market-oriented system by deregulating interest rates, development of market instruments for pricing public debt and bank loans, upgrading of India's regulatory and accounting standards to international norms, adjustments in monetary and financial policies, and exchange rate management for an increasingly liberalised and open economic and financial environment.
Book Details
Title: Indian Financial System Publisher: Anmol Publications Author: V K Bhalla
ISBN: 8174889205
Indian financial system, anmol publication, author V.K Bhalla