Mumbai:
According to a survey conducted by Oracle India, i-flex
and Indian Banks' Association, data management is likely
to be one of the key challenges for Indian banks in adopting
the standardised approach under the Basel II norms.
The
Basel II Accord aims at reducing risk in the financial
system worldwide by aligning each bank's capital requirements
to more accurately reflect its own credit, market and
operational risks.
According
to the survey, private sector banks may have an edge over
public sector entities in data management.
Most
public sector banks are still in the process of rolling
out core banking solutions across their branches, and
the standardisation of data residing in myriad systems
across various branches was proving to be challenging,
said the survey.
Around
94 per cent of the surveyed bankers cited process standardisation,
cost control, standardising and storing data, and acquiring
the necessary skill sets as the primary challenges to
Basel II compliance. Of these, public sector banks and
private banks rated process standardisation as their primary
concern, while foreign banks and co-operative banks rated
cost control as their main concern.
All
the surveyed banks appreciated the RBI shift in deadline
to 2008 as an opportunity to adopt a holistic approach.
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