Professional Documents
Culture Documents
Banking Nov16
Banking Nov16
U
Regulating ‘banks’ [Module II & III]
.S
Dr. O V Nandimath,
.L
Professor in Law,
National Law School of India University, Nagarbhavi,
N
Bangalore-560072
ovnandimath@nls.ac.in
Topics covered …
I.U
• Introduction to Indian Banking scenario
• Structure & functions of commercial bankers
& financial institutions (in India)
.S
• The role of law in regulating these
.L
institutions
N
The present module to be covered
I.U
.S
.L
N
Why regulate banks?
I.U
– Crash of world economy during 1929-33 (i.e.,
the interim period of World Wars)
– Banking crises of 1973-76 in Europe (specifically
.S
in England, where ‘life boat’ operations were
held)
.L
– The recent ‘melt-down’
N
Objectives of banking sector regulation
I.U
systemic risk)
– By restricting entry norms
– Regulating their working etc.,
.S
• Prevention of fraud
.L
• Money laundering and terrorism
N
• Consumer protection
Bank regulation in India
I.U
• 1991 – era of liberalization
– Narisimham Committee Report; and
.S
– Entry of Foreign Banks
.L
N