Please allow me to do this from a European perspective and let me start with a seemingly innocent question: Will 2012 go down in history as an “annus horribilis” or rather as an “annus mirabilis”, or neither? The answer to this question is less trivial than it appears at first. Let’s look to the origins of the words “annus horribilis” and “annus mirabilis”.
I now propose to discuss a fundamental issue which has been raised and addressed in the context of Basel II implementation not only in India but elsewhere – “Why implement Basel II?” Many of us who are from the financial sector are aware of the main incentives for adoption of Basel II.