Swami, Onkar Shivraj and Vishnu Kumar, N. Arun and Baruah, Palash (2012): Determinants of the exit decision of foreign banks in India. Published in: Ushus Journal of Business Management , Vol. 10, No. 1 (2011): pp. 1-16.
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There is hardly any study in the existing literature regarding the foreign banks’ exit decision in India. This study tries to identify the CAMEL (i.e., C=Capital adequacy, A=Asset quality, M=Management decision, E=Earning ability and L=liquidity) variables that could qualify as the determinant of foreign banks closing their business operations in India which entered after the financial sector reforms. Logistic Regression Model was used to identify the risk factors associated with the closure of business-operation of foreign banks in India. It seems that foreign banks with higher non-performing assets (NPAs), lower return on equity and lesser profit per employee were more likely to close their business in India than otherwise.
|Item Type:||MPRA Paper|
|Original Title:||Determinants of the exit decision of foreign banks in India|
|Keywords:||CAMEL, Logistic Regression Model, Foreign Banks, India|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Onkar Swami|
|Date Deposited:||10. May 2012 12:57|
|Last Modified:||12. Feb 2013 08:30|
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