The implementation of these measures has already commenced and overtime will contribute to increased resilience of the banking system and more transparent accounting of asset quality. 23. Banks will need to gear up to the challenge of improving the health and resilience of the banking system even as domestic and global macro-financial conditions remain depressed.
As Basel III is implemented, banks will need to re-engineer their internal systems and align the same to the forthcoming challenges of higher capital and liquidity. Appropriate strategies for meeting the capital adequacy requirements will need to be designed and the position of liquid assets bolstered.