Ghosh, Saibal (2008): Financial Inclusion and Financial Fragility: An Empirical Note.
Download (292kB) | Preview
Using data on Indian state-owned banks for 1997-2007, the article tests the relationship between financial inclusion and financial fragility. The findings reveal that these variables are intertwined, with each tending to reinforce the other. More importantly, financial fragility is a non-linear determinant of both availability and use of banking services.
|Item Type:||MPRA Paper|
|Original Title:||Financial Inclusion and Financial Fragility: An Empirical Note|
|Keywords:||geographic inclusion; financial fragility; India|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages|
|Depositing User:||Saibal Ghosh|
|Date Deposited:||06. Aug 2010 10:28|
|Last Modified:||12. Feb 2013 15:20|
Bank of England (2008), Financial Stability Report (October). Bank of England: London.
Beck, T, Demirguc-Kunt, A., and Levine, R. (2007a), “Finance, inequality and the poor”, Journal of Economic Growth 12, 1, 27-49.
Beck, T., Levine, R., and Levkov, A. (2007b), “Big bad banks? The impact of US branch deregulation on income distribution”, Policy Research Working Paper 4330. World Bank; Washington DC.
Beck, T, Demirguc-Kunt, A., and Levine, R. (2007c), “Reaching out: Access to and use of banking services across countries”, Journal of Financial Economics 85, 2, 234-66.
Berger, A.N. and Udell, G. (2004), “The institutional memory hypothesis and the procyclicality of bank lending behaviour”, Journal of Financial Intermediation 13, 3, 458-95.
Bofondi, M., and Giorgio, G. (2006), “Informational barriers to entry into credit markets”, Review of Finance 10, 1, 39-67.
Burgess, R., and Pande, R. (2005), “Do rural banks matter? Evidence from the Indian social banking experiment”, American Economic Review 95, 2, 780-95.
Chairlone, S., and Ghosh, G. (2009), “India”, In P. Bongini, S. Chairlone and G. Ferri (Eds.) Emerging Banking Systems. Palgrave McMillan: UK.
Collard, S. and Kempson, E. (2005), Affordable Credit: The Way Forward, York: Joseph Rowntree Foundation.
Demirguc Kunt, A., and Detragiache, E. (1998), “Financial liberalization and financial fragility”, In G. Caprio, P. Honohan and J.E.Stiglitz (Eds.) Financial Liberalization: How Far? How Fast? Cambridge University Press.
European Commission (2008), Financial services provision and prevention of financial exclusion. Directorate-General for Employment, Social Affairs and Equal Opportunities, Brussels; Belgium.
Federal Reserve (2007), Annual Report 2007. Federal Reserve: Washington DC.
Fernando, N.A. (2007), Low-income Households Access to Financial Services: International Experience, Measures for Improvement and the Future, October, Asian Development Bank: Manila
Ghosh, S. (2005), “Does leverage influence banks’ non-performing loans? Evidence for India”, Applied Economics Letters 12, 8, 913-18.
Government of India (2008), Report of the Committee on Financial Inclusion (Chairman: Dr. C. Rangarajan). Government of India: New Delhi.
His Majesty’s Treasury (2004), Promoting Financial Inclusion (December). London: UK.
International Monetary Fund (2008), Global Financial Stability Report (October). IMF: Washington DC.
Jayratne, J., and Strahan, P.E. (1996), “The finance growth nexus: Evidence from bank branch deregulation”, Quarterly Journal of Economics 111, 4, 639-70.
Kempson, E. (2006), “Policy level response to financial inclusion in developed countries: Lessons for developing countries”, Paper presented at the Conference on Access to Finance, Washington DC (May 30-31). Available at <www. worldank.org>
Kwan, S., and Eisenbis, R. (1997), “Bank risk, capitalization and operating efficiency, Journal of Financial Services Research, 12, 1, 117-31.
Laeven, L and Valencia, F. (2008), “Systemic banking crises: A new database”, IMF Working Paper No.224, IMF: Washington DC.
Mohan. R. (2006), “Economic growth, financial deepening and financial inclusion”, Address delivered at the Annual Bankers Conference at Hyderabad. Available at <www.rbi. org.in>
Nachane, D.M., Ghosh, S., and Ray, P. (2007), “Banking”, In K.Basu (ed.) The Oxford Companion to Economics in India. Oxford University Press: New Delhi.
Ravallion, M. and Datt, G. (1996), “How important to India’s poor is the sectoral composition of economic growth”, World Bank Economic Review 10, 1, 1-25.
Rime, B (2001), “Capital requirements and bank behavior: Empirical evidence for Switzerland”, Journal of Banking and Finance 25, 6, 789-805.
Shrieves, R.E. and Dahl, D. (1992), “The relationship between risk and capital in commercial banks”, Journal of Banking and Finance 16, 4, 439-57.