Regulatory Coordination for Strengthening Audit of Indian Banks

Recent bank scams can be directly attributed to the failure on part of auditors in bringing to light the fraudulent processes taking place in these banks. However, creating a robust audit institution is not as easy as it seems, as there are perverse incentives on part of auditors and lack of power with regulators to enforce mandate. In this article Vishal runs through the essence of bank audits and why they’re extremely important, and culls out a solution for making them follow a desirable trajectory.