A simple index of banking fragility: application to Indian data
AbstractPurpose – Using data on Indian banks for 1997-2007, the purpose of this paper is to develop an index of banking fragility and subsequently examine the factors affecting the index. Design/methodology/approach – The author employs basic distributional assumptions to develop the index and subsequently, employs panel data techniques to examine the factors which affect the index. Findings – Based on the statistical properties of the index, banks are classified as exhibiting high, moderate, and low stability. The multivariate regressions indicate an important role for banking industry variables in influencing the index. Practical implications – The paper complements the strand of literature which has been focusing on developing indicators of banking stability and examining the factors affecting them. Originality/value – To the author's knowledge, this is perhaps the first study for an emerging economy and more certainly for India, to examine this issue.
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Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Risk Finance.
Volume (Year): 12 (2011)
Issue (Month): 2 (February)
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Other versions of this item:
- Saibal, Ghosh, 2010. "A Simple Index of Banking Fragility: Application to Indian Data," MPRA Paper 30321, University Library of Munich, Germany.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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