## The Performance of Indian Banks During Financial Liberalization

_IMF Working Papers, July 1, 2003_

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## Bibliographic details
- Authors: Petya Koeva Brooks
- Published: July 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451856989.001

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### 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
  - the observed increase in competition during financial liberalization has been associated with lower intermediation costs and profitability of the Indian banks.

### Empirical findings
- Ownership-type effects:
  - Ownership type has a significant effect on some performance indicators (specific indicators not listed on the page overview).
- Competition and performance:
  - Increased competition during financial liberalization is associated with lower intermediation costs.
  - Increased competition during financial liberalization is associated with lower profitability of Indian banks.

### Subject areas and keywords
- 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

*Source: The Performance of Indian Banks During Financial Liberalization, IMF Working Papers (Working Paper No. 2003/150), Petya Koeva Brooks, July 1, 2003.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-performance-of-indian-banks-during-financial-liberalization-16410_