Thus, Indian banks will have high common equity capital ratio even under Basel III which will stand them in good stead. It is worth noting that more than 50% of Indian banks have common equity ratio of higher than 8% at present and can implement Basel III even today without any phase-in.
This is the case in the United States, for instance, but it is also true within most individual countries in Europe. In the euro area, however, while there are cohesion funds for catching-up countries, and private credit flows can finance temporary imbalances, permanent fiscal transfers between Member States are not envisaged.