Latika Chaudhary of Scripps College and Jared Rubin pf Chapman University write this interesting paper.
They analyse whether leaders provide more public goods to people of their religion?
Archive for October 29th, 2013
Religious Identity and the Provision of Public Goods: Evidence from the Indian Princely States
October 29, 2013Net Interest Margin, Financial Crisis and Bank Behavior: Experience of Indian Banks..
October 29, 2013This is the title of this new RBI WP by Mr Tushar Das.
It looks at how NIMs of banks have changed over the years. It also analyses the impact of 2008 crisis on NIMs of banks. It shows NIMs of banks have declined over the years because of the 1992 reforms.
The global financial crisis that jeopardized the advanced economies is perceived to have had a limited impact on Indian banking system. However, the effect was so severe that the advanced economies are still struggling to achieve stability. In this paper, we attempted to analyze the impact of the financial crisis on the Net Interest Margin (NIM) of Indian banks. Variables considered for the analysis were of three different types: bank specific, those representing the banking industry, and a third category consisting of macro-economic variables. We used a wide range of bank-wise panel data for the period 1992 through 2010. In this paper, we examined the impact of the financial crisis on the variables, considered under the monetary transmission literature, such as size, capital and liquidity. When analyzed from the ownership angle, it has been observed that the public sector banks were affected significantly during the crisis. We find that, during the second half of the crisis, the margin of banks with low capital and poor liquidity was impaired significantly when compared with banks that had sufficient capital and liquidity support.
RBI’s Q2 review of Monetary policy is more like review of Financial markets policy…
October 29, 2013The much hyped tatement is out and has become even shorter. Not sure what it achieves as it leaves out many crucial things covered in previous reviews.
There is a possibility that Rajan wants to shape his statement as just a few paras as seen in case of other central banks. This could be the first step towards such a statement. So may be in future you just see rate action, one para on global economy, one on Indian economy and may be another one on a topical issue…
But then why mention things like five pillars, reforms in banking etc in this statement. You could have minimised this saying the measures on banking and finance will be announced as and when…
Following decisions have been taken:
Mostly Economics 
