The Performance of Indian Banks During Financial Liberalization

July 1, 2003

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper provides new empirical evidence on the impact of financial liberalization on the performance of Indian commercial banks. The analysis focuses on examining the behavior and determinants of bank intermediation costs and profitability during the liberalization period. The empirical results suggest that ownership type has a significant effect on some performance indicators and that the observed increase in competition during financial liberalization has been associated with lower intermediation costs and profitability of the Indian banks.

Subject: Bank soundness, Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Foreign banks, Loans, State-owned banks

Keywords: bank, bank profitability indicator, Bank soundness, bank spread, bank Spread, banking sector, Commercial banks, financial liberalization, Foreign banks, intermediation cost, Loans, nationalized bank, private bank, profitability, State-owned banks, WP

Pages:
33
Volume:
2003
DOI:
https://doi.org/10.5089/9781451856989.001
Issue:
150
Series:
Working Paper No. 2003/150
Stock No:
WPIEA1502003
ISBN:
9781451856989
ISSN:
1018-5941

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