This paper provides a practitioner’s perspective on the compliance deficiencies in banks, which are found deep-rooted in the cultural deficit and ethical vacuum. It dives into the behavioural dimensions and suggests ways to strengthen the efficacy of compliance through leadership, ethics,...

Primary (Urban) Cooperative Banks (UCBs) in India operate under the provisions of the Banking Regulation Act of 1949 – As Applicable to Cooperative Societies (AACS). Considering the large heterogeneity in asset sizes of UCBs and the absence of any regulatory cap on their leverages, the...

The author identifies key elements of governance, and the potential reasons for failures and highlights that the structure of boards, thrust on the adoption of best practices, and regulatory guidelines are necessary but not sufficient to ensure failsafe governance standards. The author...

Primary Cooperative Banks, popularly known as Urban Cooperative Banks (UCBs), are increasingly becoming marginal players in the Indian financial system as their clientele share is increasingly being taken away by other banks. Despite their localised presence in large numbers and an important...

The likelihood of not getting the desired funding at an appropriate cost or the probability of an undue loss of value in the event of a fire sale of assets is recognised as the liquidity risk. Moreover, a flat idiosyncratic liquidity risk does not necessarily translate into a similar risk...

A large quantum of technical work is underway in the area of alternative credit scoring to better understand and put in place an effective process of the credit risk measurement and management. However, the traditional and new approaches have their complementarities and inter-dependence. Use of...

Inadequate regulations or failure of regulations to keep pace with financial innovations could have been reasons for financial crises but equally critical contributing factors for financial distress have been inadequate internal control, false assumptions about market and liquidity, and lack of...

Alternative channels of finance have the capacity to fill the gap where formal finance is unable to reach or has proven to be inefficient. It also has the potential to soften the lending rates as a result of lower operational costs and enhanced competition with the traditional lending channels....