The views expressed and the approach pursued in the paper is strictly personal. I would like to thank Prof. David Roodman for certain clarifications on the use of the dynamic panel data algorithm and especially, two anonymous referees for the comments and inputs on an earlier draft which greatly improved the analysis. Any remaining errors and omissions are solely the author's own. Email: email@example.com.
HOW DID STATE-OWNED BANKS RESPOND TO PRIVATIZATION? EVIDENCE FROM THE INDIAN EXPERIMENT
Version of Record online: 16 AUG 2010
© 2010 The Author Journal compilation © CIRIEC 2010
Annals of Public and Cooperative Economics
Volume 81, Issue 3, pages 389–421, September 2010
How to Cite
Ghosh, S. (2010), HOW DID STATE-OWNED BANKS RESPOND TO PRIVATIZATION? EVIDENCE FROM THE INDIAN EXPERIMENT. Annals of Public and Cooperative Economics, 81: 389–421. doi: 10.1111/j.1467-8292.2010.00415.x
Résumé en fin d’article; Zusammenfassung am Ende des Artikels; resumen al final del artículo.
- Issue online: 16 AUG 2010
- Version of Record online: 16 AUG 2010
ABSTRACT**: The paper examines the response of banks to privatization. Using data on all state-owned banks for the period 1990–2006, the findings indicate that fully state-owned banks are significantly less profitable than partially privatized ones. The improvements in performance by partially privatized banks are, in fact, sustained after privatization. In addition, the analysis indicates that privatization improves profitability, efficiency and improves bank soundness, while lowering bank risk. While the improvement in bank risk is typically spread out over a much longer period, the progress in terms of profitability and economic efficiency typically occurs in the post-privatization period.