ABSTRACT
The Indian Economy is booming on the back of strong economic policies and a healthy regulatory regime. The effects of this are far- reaching and have the potential to ultimately achieve the high growth rates that the country is yearning for. The banking system lies at the nucleus of a country's development robust reforms are needed in India's case to fulfill that. The BASEL III accord from the Bank of International Settlements attempts to put in place sound frameworks of measuring and quantifying the risks associated with banking operations by 2019. The chapter seeks to showcase the changes that will emerge as a result of banks adopting the international norms and whether they will be able to sustain the pressures and shocks of the changing scenarios. This enables one to discern the complete scenario that will emerge in the years ahead. The Risk Management scenario will strengthen owing to the liberalization, regulation and integration with global markets. Management of risks will be carried out proactively and quality of credit will improve, leading to a stronger financial sector. The authors have emphasized the dire need of Altm ami Z Score, Merton Model, KAW Model and Value at Risk Model for the Banks in a more sophisticated manner through caselets.
