Adopting our general approach of gradualism, we in India have implemented the Basel I framework with effect from 1992-93 which was, however, spread over three years – banks with branches abroad were required to comply fully by end March 1994 while the other banks were required to comply by end March 1996.
In a study that illustrated the importance of banks’ knowledge of local conditions, Allen Berger and David Smith (2003) found that European affiliates of multinational corporations strongly prefer working with a bank in the country of their operation, rather than a bank from the country of the multinational’s corporate headquarters.