Determinants of Credit Risk in Indian State-owned Banks: An Empirical Investigation

Abhiman Das and Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: The determinants of credit risk of banks in emerging economies have received limited attention in the literature. Using advanced panel data techniques, the paper seeks to examine the factors affecting problem loans of Indian state-owned banks for the period 1994-2005, taking into account both macroeconomic factors as well as microeconomic variables. The findings reveal that at the macro level, GDP growth and at the bank level, real loan growth, operating expenses and bank size play an important role in influencing problem loans. The study performs certain robustness tests of the results and discusses several policy implications of the analysis.

Keywords: credit risk; banking; state-owned banks; India (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2007-09
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Published in Economic Issues 2.12(2007): pp. 48-66

Downloads: (external link)
http://mpra.ub.uni-muenchen.de/17301/ original version (application/pdf)

Related works:
Journal Article: Determinants of Credit Risk in Indian State-owned Banks: An Empirical Investigation (2007)
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: http://EconPapers.repec.org/RePEc:pra:mprapa:17301

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany
Address: Schackstr. 4, D-80539 Munich, Germany
Contact information at EDIRC.
Series data maintained by Ekkehart Schlicht ().