Professional Documents
Culture Documents
Narasimham Committee
Narrow banking means that the weak banks place their funds
only in the short term in risk-free assets- these banks try to
match their demand deposits with safe liquid assets
Capital Adequacy Ratio
The committee has also suggested that the
government should consider raising the
prescribed capital adequacy ratio to improve
inherent strength of banks and to improve their
risk absorption capacity.
Review and update banking laws.