Template-Type: ReDIF-Article 1.0 
Author-Name: Bijoy Rakshit
Author-Email:  bijoy.rakshit@iitrpr.ac.in
Author-Workplace-Name:  School of Liberal Studies, Pandit Deendyal Energy University, India
Title: Does Bank Competition Necessarily Contribute to Higher Profits? The Case of Indian Banking
Abstract:  This paper empirically examines an important research question of whether changes in bank competition have influenced the profitability pattern of Indian banking. Using the two-step system generalized method of moments, we examine the implications of bank deregulation measures on bank profitability for a set of 70 commercial banks in India over the period 1997 to 2017. The findings show that a higher degree of bank competition that has led to the contraction of the interest rates margin has negatively affected bank profitability. The findings also suggest important policy implications for the Indian banking industry.
Classification-JEL:  G21 ,F30
Keywords:  Bank competition, profitability,System-GMM
Journal:  Asian Economics Letters
Pages: 1-7
Volume: 3
Issue: 3
Year:  2022
DOI:  2022/08/21
File-URL:  https://a-e-l.scholasticahq.com/api/v1/articles/35526-does-bank-competition-necessarily-contribute-to-higher-profits-the-case-of-indian-banking.pdf
File-Format:  Application/pdf
Handle:  RePEc:ayb:jrnael:74