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Macroprudential regulation and bank performance:Does ownership matter?

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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. 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.

Suggested Citation

  • Ghosh, Saibal, 2013. "Macroprudential regulation and bank performance:Does ownership matter?," MPRA Paper 65212, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:65212
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    More about this item

    Keywords

    banking; macroprudential; capital adequacy; loan classification; provisioning; ownership; India;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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