Monetary policy and bank behavior: Empirical evidence from India

Ghosh, Saibal (2006): Monetary policy and bank behavior: Empirical evidence from India. Published in: Economic and Political Weekly , Vol. 41, No. 10 (November 2006): pp. 853-856.

Abstract

The paper develops an empirical model to explore the role that bank characteristics play in influencing the monetary transmission process. Employing data on Indian commercial banks for the period 1992-2004, the findings indicate that for banks classified according to size and capitalization, a monetary contraction lowers bank lending, although large and well-capitalized banks are able to shield their loan portfolio from monetary shocks.

• Item Type: MPRA Paper
• Language: English
• Keywords: monetary policy; banking; India
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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