Basel accords

This refers to ‘Banking supervision: BIS betrays a Western bias’ (April 29). Indeed, the one-size-fits-all approach of the Basel accords may not adequately address the diverse needs and circumstances of different economies.

The Basel accords, while aiming for universality, may not adequately cater to the unique needs of developing economies, whose inflation dynamics and regulatory requirements differ significantly. Flexible regulatory frameworks are necessary to accommodate these differences and promote stability.

Developing countries’ industries and risk profiles vary greatly from developed ones, making uniform capital adequacy norms inappropriate and potentially harmful. Despite global financial entities’ contributions to instability, developing economies often face unfair scrutiny and regulation. Greater representation in global forums is needed to advocate for fair treatment and balanced policies.

Increased inclusion of developing economies in forums like the G7 and G10 is vital for more inclusive and effective global economic governance, fostering equity and sustainability.

Srinivasan Velamur

Chennai

Self-employment

The article ‘Jobs versus work’ (April 29) has argued that those who are self-employed use less capital but earn more income than than those who are in regular jobs. But the question is: Are all the business persons successful? The answer, of course, cannot be in the affirmative. However, the economic landscape is changing in India.

That the start-ups have increased in India is a case in point. Self-employment can to a large exent solve the unemployment problem in the country.

But the youth should have sustained enthusiasm and determination to be successful entrepreneurs.

S Ramakrishnasayee

Chennai

Bandhan Bank clarification

This refers to an article dated April 29, 2024, in your publication, with the mention of C S Ghosh, MD & CEO, Bandhan Bank. The report states that he is considering selling his stake in Bandhan Financial.

We want to clarify that the report is factually inaccurate and misleading.

In his phone call with the concerned journalist, Mr. Ghosh had categorically denied any intent of the stake sale.

In Bandhan Bank’s exchange disclosure of April 5, 2024, Mr Ghosh had mentioned about his decision to retire from the Bank and assume a strategic role at the Bandhan Group level.

It is also important to mention that Mr Ghosh and family own only 1.9 per cent in Bandhan Financial Services, as against the other numbers mentioned in the article. The article also errs on Mr Ghosh’s resignation. We would like to re-emphasise that Mr Ghosh will retire from his services on the completion of his term and had not tendered his resignation.

Our correspondent replies:

Our report clearly says that 55.34 per cent in Bandhan Financial Services is held by the promoter group made up of three trusts. It does not equate this stake with Mr Ghosh alone. During the phone call with Mr Ghosh he termed the stake sale as “speculative”, which we have quoted in our report.

The bank is right in pointing out that Mr Ghosh is stepping down on completion of his term and it is not a resignation. The error is regretted.

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