A Study on Regulatory Framework of Commercial Banks in Kerala

Banks are important segments in a financial system. They attract depositors by introducing different kinds of deposit schemes. These deposits are directed to businesses which use them for productive purposes in the country. This is why they are considered as store houses of the Country’s wealth and financiers for economic development. Since the banking industry in a country is considered as the nerve system of all economic development in the country, strict regulation and supervision is sine-qua non today, particularly the banking system around the globe has been in recent years going through some of the most intense criticism and scrutiny. But the heightened regulatory requirements will affect the banks’ availability of capital and the cost of maintaining higher capital and liquidity requirements will also have an impact on credit pricing. It is in this background that the present study has been conducted.