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Macroprudential Regulation and Bank Performance: Evidence from India

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  • Ghosh, Saibal

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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51226.

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Date of creation: Oct 2013
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Handle: RePEc:pra:mprapa:51226

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Keywords: banking; macroprudential; capital adequacy; loan classification; provisioning; ownership; India;

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