Determinants of Financial Stress of Indian Banks

South Asia Economic Journal Pub Date : 2018-09-01 DOI:10.1177/1391561418794695

N. Kumar, Arvind Shrivastava, Dayashankar Singh, Purnendu Kumar

引用次数: 4

Abstract

The study examines factors influencing non-performing loans (NPLs) for Indian banks. The analysis contributes by including restructured advances also in addition to standard measures of asset quality that provides comprehensive picture of pressure on banks’ balance sheet. Moreover, Bayesian technique with multivariate t-distributed prior is applied for robust estimation. Utilizing quarterly dataset from 2005 to 2015, strong persistence of bad assets is clearly evident. Bank-specific characteristics such as growth of advances, profitability and net interest margin are significant determinants. Among macro-factors, high growth rate is having retarding impact on bad assets. Moreover, ownership effect is having differential behaviour with state-owned banks being most vulnerable. JEL: G21, C11, C23

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印度银行财务压力的决定因素

该研究考察了影响印度银行不良贷款的因素。该分析的贡献在于，除了对资产质量的标准衡量之外，还包括了重组垫款，后者提供了银行资产负债表压力的全面图景。此外，采用多元t分布先验贝叶斯技术进行稳健估计。利用2005年至2015年的季度数据，不良资产的强劲持久性显而易见。银行特有的特征，如预付款增长、盈利能力和净息差，是重要的决定因素。在宏观因素中，高增长率对不良资产产生了迟滞作用。此外，所有权效应表现出差异性，国有银行最为脆弱。耶利米书:21,11,23

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

South Asia Economic Journal Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： The South Asian nations have progressively liberalized their economies in recent years in an effort to integrate with the world economy. They have also taken steps to enhance multilateral and regional economic integration. Even though the South Asian economies have grown at an average rate of more than 5 per cent over the last few years, roughly 40 per cent of their people still live below the poverty line. Hence, the South Asian region continues to face many challenges of economic and social development. The South Asia Economic Journal (SAEJ) is designed as a forum for informed debate on these issues, which are of vital importance to the people of the region who comprise one-sixth of the world’s population. The peer-reviewed journal is devoted to economic analysis and policy options aimed at promoting cooperation among the countries comprising South Asia. It also discusses South Asia’s position on global economic issues, its relations with other regional groupings and its response to global developments. We also welcome contributions to inter-disciplinary analysis on South Asia. As a refereed journal, SAEJ carries articles by scholars, economic commentators,policy-makers and officials, from both the private and public sectors. Our aim is to create a vibrant research space to explore the multidimensional economic issues of concern to scholars working on South Asia. Among the issues debated in relation to South Asia are: - the implications of global economic trends; - the issues and challenges by WTO; - approaches to industrialization and development; - the role of regional institutions such as the SAARC; - the relationship between SAARC and other regional economic groupings such as ASEAN; - the implications of economic liberalization for trade and investment in the region; - new initiatives that can be launched to enhance economic cooperation among the South Asian countries both on a bilateral and a regional basis.