The Performance of Indian Banks During Financial Liberalization
33 Pages Posted: 30 Jan 2006
Date Written: July 2003
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.
Keywords: financial liberalization, banking sector
JEL Classification: G21
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