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© 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.

Abstract

Banks in India have been gone through structural changes in the last three decades. The prices that bank charge depend on the competitive levels in the banking sector and the risk the assets and liabilities carry in banks’ balance sheet. The traditional Lerner Index indicates competitive levels. However, this measure does not account for the risk, and this study introduces a risk-adjusted Lerner Index for evaluating competition in Indian banking for the period 1996 to 2016. The market power estimated through the adjusted Lerner Index has been declining since 1996, which indicates an improvement in competitive condition for the overall period. Further, as indicated by risk-adjusted Lerner Index, the Indian banking system exerts much less market power and hence are more competitive contrary to what is suggested by traditional Lerner index.

Details

Title
Bank Competition in India: Some New Evidence Using Risk-Adjusted Lerner Index Approach
Author
Arrawatia, Rakesh 1 ; Misra, Arun 2 ; Dawar, Varun 3 ; Maitra, Debasish 4 

 Institute of Rural Management Anand, Anand 388001, India 
 Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur 721302, India 
 Department of Financial Studies, University of Delhi, New Delhi 110021, India 
 Indian Institute of Management Indore, Indore 453556, India 
First page
44
Publication year
2019
Publication date
2019
Publisher
MDPI AG
e-ISSN
22279091
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2550246834
Copyright
© 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.