How important is ownership in a market with level playing field?

Bhaumik, Sumon Kumar; Dimova, Ralitza

doi:10.1016/j.jce.2003.12.001

Cited by 79 publications

(78 citation statements)

References 45 publications

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“…However, most of the studies are based on the early phase of liberalization. Bhaumik and Dimova (2004) however find that the results are different depending on time period studied. They find that private-sector and foreign banks were more efficient than public-sector banks initially, but after 1998-1999, neither ownership nor competition affects bank performance.…”

Section: Background and Related Literaturementioning

confidence: 78%

“…Bank performance is typically measured by return on assets (Berger and Mester, 2003;Bhaumik and Dimova, 2004;DeYoung et al,1993;Hirschey,1999;Nippani and Green, 2002). However, this may not be the best measure of efficiency in an expanding sector where profitability may increase simply because of a combination of increasing output prices and stable input costs, without any underlying efficiency gain.…”

Section: Background and Related Literaturementioning

confidence: 99%

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Ownership, competition, and bank productivity: An analysis of Indian banking in the post-reform period

Sanyal

Shankar

2011

International Review of Economics & Finance

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Section: Background and Related Literaturementioning

confidence: 78%

Section: Background and Related Literaturementioning

confidence: 99%

Ownership, competition, and bank productivity: An analysis of Indian banking in the post-reform period

Sanyal

Shankar

2011

International Review of Economics & Finance

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“…In the empirical literature it is customary to control for these factors to avoid any spurious relation between the dependent variable and the variables of interest. Following existing literature (Berger et al 2010;Liang et al 2013;Faleye and Krishnan 2017) and the unique regulatory requirements of bank lending in India (Sarkar et al 1998;Bhaumik and Dimova 2004;Yang and Zhao 2014), we use a number of conditioning variables in our regression. These variables include (i) Log Assets, measured by the logarithm of total assets, to proxy for bank's market power and other lending characteristics; (ii) Loans to Assets, measured by the percentage of loans and advances to total assets, to account for possible differences in business models across banks and (ii) Priority Sector Lending, measured by the percentage of priority sector lending to total loans and advances, to proxy for the extent of government intervention in bank lending with potential effects on bank outcomes.…”

Section: Control Variablesmentioning

confidence: 99%

Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India

Sarkar

2018

IJFS

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Abstract:We study the effect of board governance in state-owned and private banks by undertaking a study of commercial banks in India that has both bank groups. Covering a ten-year period from 2003 to 2012 that witnessed a large number of governance reforms in India, the results of our empirical analysis provide evidence of strong ownership effects with board independence exhibiting a significant positive correlation with the performance of private banks and a significant but negative correlation with the performance of state-owned banks. The effect of CEO duality is negative in state-owned banks where incidence of CEO duality is high. We find that a longer CEO tenure has significant positive effects on bank outcomes with these effects strengthening in the later years of CEO tenure. Our results have governance implications for strengthening the composition of board of directors and CEO tenure especially in state-owned banks.

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“…In India we have banks of public sector banks, private sector banks and foreign banks. In India after 1992, all the three categories of banks are subjected to same prudential and regulatory norms and therefore a level playing field was created (Bhaumik and Dimova, 2003). Bhaumik and Dimova (2003), found that public sector banks performance is in no way inferior to the private sector banks.…”

Section: Macroeconomic and Bank Specific Determinants Of Npasmentioning

confidence: 99%

Macroeconomic and Bank Specific Determinants of Non-Performing Loans (NPLs) in the Indian Banking Sector

Memdani¹

2017

Studies in Business and Economics

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Abstract:The main objective of the paper is to find out the determinants of NPAs in the Indian Banking sector and to study if these determinants vary across the three different ownership structures viz., public sector banks (PSBs), private banks (PBs) and foreign banks (FBs), of banks in India. The panel data for all the banks from 2005 to 2014 is collected from the official website of Reserve Bank of India (RBI), the Central Bank of the country. The econometric technique of Fixed Effects model and Random Effects model is used for the purpose. The results reveal that Macro economic factors, like log of percapita income (LPCY) and Inflation (INFN), are significantly affecting NPLs in Public Sector Banks (PSBs). In case of private banks (PBs) LPCY is highly significant while bank specific variables like size and total loans to total loans of the banking sector (TLTLBS) are significant at 10% level. For FBs none of the variables were significant.

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How important is ownership in a market with level playing field?

Cited by 79 publications

References 45 publications

Ownership, competition, and bank productivity: An analysis of Indian banking in the post-reform period

Ownership, competition, and bank productivity: An analysis of Indian banking in the post-reform period

Bank Ownership, Board Characteristics and Performance: Evidence from Commercial Banks in India

Macroeconomic and Bank Specific Determinants of Non-Performing Loans (NPLs) in the Indian Banking Sector

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