Charter Value and Risk-taking: Evidence from Indian Banks

Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: The article examines the determinants of banks’ charter value and its disciplining effect on bank risk-taking since the mid-1990s. The analysis indicates that deposit and loan market concentration exert a significant effect on charter value, suggestive of a strong link between competition and charter value. Among the traditional banking activities, bank size and efficiency are found to be important determinants of charter value. The disciplining effect of charter value is robust across several measures on bank risk.

Keywords: banking; charter value; risk-taking; capital buffer; prudential regulation; India (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2009-08-01
New Economics Papers: this item is included in nep-cwa and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in Journal of the Asia Pacific Economy 3.14(2009): pp. 270-286

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/19543/1/MPRA_paper_19543.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:19543

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().