Transparency in Indian Banks - Considering Information on Bank Websites

Abstract

A sound and well-managed bank should, in theory, benefit when it provides comprehensive, accurate, relevant and timely information on its financial condition and performance, and ability to manage and control risks. The Basel committee on banking supervision in its report in September 1998 stressed the importance of transparency as "Key element of an efficiently supervised, safe and sound banking system. On the other hand lack of transparency tends to negatively distort risk perception in the market and increases the intrinsic fragility of individual banking institution apart from bearing seeds of systematic disturbances."