Monetary policy and bank behavior: Empirical evidence from India
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.
|Date of creation:||Nov 2006|
|Date of revision:|
|Publication status:||Published in Economic and Political Weekly 10.41(2006): pp. 853-856|
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