The vulnerability of banks to macroeconomic and financial shocks is an area of growing interest to policymakers, especially in emerging markets. Strong adverse aggregate shocks contribute heavily to loan losses when banks are highly exposed to such shocks. I intend to understand the...

The Basel III framework was introduced by the Bank for International Settlements (BIS after the 2008 financial crisis which revealed the shortcomings of the Basel II norms. All the countries are supposed to implement Basel III norms by March 2019. The Basel Committee has recognized that the...