Macroprudential Regulation and Bank Performance: Evidence from India

Ghosh, Saibal (2013): Macroprudential Regulation and Bank Performance: Evidence from India.

Abstract

Employing data on Indian banks for 1992-2012, the article examines the impact of macroprudential measures on bank performance. First, it finds that state-owned banks tend to have lower profitability and soundness than their private counterparts. Next, it tests whether such differentials between state-owned and private banks are driven by macroprudential measures; it finds strong support for this hypothesis.

• Item Type: MPRA Paper
• Language: English
• Keywords: banking; macroprudential; capital adequacy; loan classification; provisioning; ownership; India
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation

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