Ghosh, Saibal and Das, Abhiman (2006): Depositor discipline in Indian banking: Separating facts from folklore. Published in: Monetary Policy and Issues: New Research : pp. 139-163.
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The paper traces the determinants of depositor discipline in Indian banking. Using data for the period 1997:1 to 2002:4, the findings reveal that, while bank-specific factors are dominant in case of state-owned banks, systemic variables tend to overwhelm bank-specific factors in explaining behaviour of depositors of private banks. In case of private and foreign banks, policy announcements have an important bearing on the dependent variable. For state-owned banks, larger asset translates into higher deposit growth, suggesting that depositors are sensitive to the ‘too-big-to-fail’ effect. Finally, insured depositors tend to exercise discipline by compelling banks to pay a higher price on deposits.
|Item Type:||MPRA Paper|
|Original Title:||Depositor discipline in Indian banking: Separating facts from folklore|
|Keywords:||depositor discipline; contagion effect; deposit insurance; banking; India|
|Subjects:||C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Saibal Ghosh|
|Date Deposited:||21. Sep 2009 08:09|
|Last Modified:||12. Feb 2013 17:49|
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