Does Basel III – Liquidity Coverage Ratio Affect the Profitability of Indian Public Sector Banks?

IF 1.3 Q1 AREA STUDIES Millennial Asia Pub Date : 2023-10-13 DOI:10.1177/09763996231192027

Shrujan Rajdeep, Biswajit Patra

引用次数: 0

Abstract

The article analyses the interrelation between the Liquidity Coverage Ratio (LCR) and the profitability of Indian public sector banks from March 2015 to March 2022. It uses the panel data technique to explain these relations. Further, this article also looked at the interactive effect of LCR through advances and the interest rate. It has gone through pre- and post-diagnostic checks finalizing the model and variables. The findings of the result surprisingly imply that Basel III regulatory directives like LCR positively impact the bank profitability in India rather than general apprehension about the negative impact. However, the interactive effects of LCR through advances negatively influence the banks’ profitability. Variables such as deposits, Economic Policy Uncertainty (EPU) and Gross Domestic Product (GDP) have no statistically significant relation with banks’ profitability. This article recommends that Basel III guidelines should not be looked at negatively for the performance of banks.

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巴塞尔协议III -流动性覆盖率是否影响印度公共部门银行的盈利能力?

本文分析了2015年3月至2022年3月印度公共部门银行流动性覆盖率(LCR)与盈利能力之间的相互关系。它使用面板数据技术来解释这些关系。此外，本文还考察了LCR通过预付款和利率的交互效应。它经过了诊断前和诊断后的检查，最终确定了模型和变量。结果的发现令人惊讶地表明，巴塞尔III监管指令如LCR对印度的银行盈利能力产生了积极影响，而不是普遍担心负面影响。然而，LCR通过预提的交互作用对银行的盈利能力产生了负面影响。存款、经济政策不确定性(EPU)和国内生产总值(GDP)等变量与银行盈利能力没有统计学上的显著关系。本文建议，巴塞尔协议III的指导方针不应该对银行的表现产生负面影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Millennial Asia AREA STUDIES-

CiteScore

4.50

自引率

12.50%

发文量

期刊介绍： Millennial Asia: An International Journal of Asian Studies is a multidisciplinary, refereed biannual journal of the Association of Asia Scholars (AAS)–an association of the alumni of the Asian Scholarship Foundation (ASF). It aims to encourage multifaceted, multidisciplinary and interdisciplinary research on Asia, in order to understand its fast changing context as a growth pole of global economy. By providing a forum for Asian scholars situated globally, it promotes dialogue between the global academic community, civil society and policy makers on Asian issues. The journal examines Asia on a regional and comparative basis, emphasizing patterns and tendencies that go beyond national borders and are globally relevant. Modern and contemporary Asia has witnessed dynamic transformations in cultures, societies, economies and political institutions, among others. It confronts issues of collective identity formation, ecological crisis, rapid economic change and resurgence of religion and communal identifies while embracing globalization. An analysis of past experiences can help produce a deeper understanding of contemporary change. In particular, the journal is interested in locating contemporary changes within a historical perspective, through the use of interdisciplinary and multidisciplinary approaches. This way, it hopes to promote comparative studies involving Asia’s various regions. The journal brings out both thematic and general issues and the thrust areas are: Asian integration, Asian economies, sociology, culture, politics, governance, security, development issues, arts and literature and any other such issue as the editorial board may deem fit. The core fields include development encompassing agriculture, industry, regional trade, social sectors like health and education and development policy across the region and in specific countries in a comparative perspective.