Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2022 | 11 | nr 2 | 51--69
Tytuł artykułu

Recapitalization and ITS Impact on Bank's Stability, Competitiveness and Profitability: Evidence from Indian Psbs

Warianty tytułu
Języki publikacji
There is a current argument relating to the capital infusion to the banks for strengthening capital on one side, without taking prudential measures to reduce the strains already present in the credit quality of banks on the other. The regulators thought that recapitalization of banks will be used to effectively reduce the cost of funds in the regular business provided when there is a higher lending demand. The capital infusion may turn out ineffective if there is less loan demand. On this background, this paper examines the effect of recapitalization of Indian public sector banks, and its impact on banks stability, competitiveness and profitability. Out of 21 banks, 18 banks reacted positively in case of one indicator, but failed in regard to overall indicators. Finally, the study reveals an interesting outcome that, there is no relationship between the size of the infusion and the performance of the bank. Hence, the study concludes that the capital infusion will help the banks significantly to improve the stability, competitiveness and profitability only when the banks' fundamentals are strong, combined with the deployment of fresh funds and their managerial capability (original abstract)
Słowa kluczowe
Opis fizyczny
  • Pondicherry University
  • Pondicherry University
  • Pondicherry University
  • Bayazitova, D., & Shivdasani, A. (2012). Assessing TARP. The Review of Financial Studies, 25(2), 377-407.
  • Beccalli, E., Frantz, P., & Lenoci, F. (2018). Hidden effects of bank recapitalizations. Journal of Banking and Finance, 94, 297-314.
  • Black, L.K., & Hazelwood, L.N. (2013). The effect of TARP on bank risk-taking. Journal of Financial Stability, 9(4), 790-803.
  • Brei, M., Gambacorta, L., & von Peter, G. (2013). Rescue packages and bank lending. Journal of Banking & Finance, 37(2), 490-505.
  • Chiarella, C., Cubillas, E., & Suarez, N. (2019). Bank recapitalization in Europe: Informa tional content in the issuing method. Journal of International Financial Markets, Institutions & Money, 63, 101134.
  • Fitrianto A., & Kahal Musakkal, N.F. (2016). Panel Data Analysis for Sabah Construction Industries: Choosing the Best Model. Procedia Economics and Finance, 35, 241-248.
  • Liu, W., Kolari, J.W., Tippens, T.K., & Fraser, D.R. (2013). Did capital infusions enhance bank recovery from the great recession? Journal of Banking & Finance, 37(12), 5048- -5061.
  • Montgomery, H., & Shimizutani, S. (2009). The effectiveness of bank recapitaliza tion policies in Japan. Japan and the World Economy, 21(1), 1-25. http://dx.doi. org/10.1016/j.japwor.2007.07.004.
  • Panetta, F., Faeh, T., Grande, G., Ho, C., King, M., Levy, A., Signoretti, F.M., Taboga, M., & Zaghini, A. (2009). An Assessment of Financial Sector Rescue Programmes. BIS Papers, 48, 1-73.
  • Tahir, S., Adegbite, E., & Guney, Y. (2017). An international examination of the economic effectiveness of banking recapitalization. International Business Review, 26(3), 417- -434.
Typ dokumentu
Identyfikator YADDA

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.