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Systemic Risk in Indian Banking: Measurement and Impact of COVID-19

Author

Listed:
  • Kalpakam G

    (K J Somaiya Institute of Management, Vidyavihar, Mumbai, India)

  • Krina TRIVEDI

    (K J Somaiya Institute of Management, Vidyavihar, Mumbai, India)

Abstract

This study examines the systemic risk in the Indian banking system using two models. The systemic risk cube explains the importance of measuring systemic risk in a scenario like contagion and systemic risk measurement index SRISK as proposed by NYU stern. Measurement of SRISK is done for two time-periods: before COVID-19 i.e. February 2020 and after COVID-19 i.e. February 2021. The findings show that the COVID-19 pandemic has not shown increase in SRISK considerably unlike 2009 crisis when the SRISK increased considerably, causing an economic downturn. The banking system remains a vital part for economic stability and studying the financial system to scale its impact on the economy during extreme events like in a pandemic remains an unflinching necessity of the time.

Suggested Citation

  • Kalpakam G & Krina TRIVEDI, 2021. "Systemic Risk in Indian Banking: Measurement and Impact of COVID-19," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 143-151.
    • Handle: RePEc:ddj:fseeai:y:2021:i:1:p:143-151
    DOI: 10.35219/eai15840409177
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    References listed on IDEAS

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