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Does Financial Liberalization Lower Problem Loans in Banks?

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  • Saibal Ghosh

Abstract

The paper explores whether financial liberalization promotes improved credit risk management in Indian banking in the form of fewer problem loans. Using annual data on state‐owned banks for the period 1996–2005, the paper finds that, after controlling for a myriad of factors, financial liberalization is influential in lowering banks' problem loans. Robustness tests reinforce these findings.

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  • Saibal Ghosh, 2007. "Does Financial Liberalization Lower Problem Loans in Banks?," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 36(2), pages 171-188, July.
    • Handle: RePEc:bla:ecnote:v:36:y:2007:i:2:p:171-188
    DOI: 10.1111/j.1468-0300.2007.00179.x
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    Cited by:

    1. Ghosh, Saibal, 2019. "Loan delinquency in banking systems: How effective are credit reporting systems?," Research in International Business and Finance, Elsevier, vol. 47(C), pages 220-236.
    2. Altaf Hussain & Ambar Khalil & Maryam Nawaz, 2013. "Macroeconomic Determinants Of Non-Performing Loans (Npl): Evidence From Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 59-72, December.

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