BANKING CRISES WITH SPECIAL REFERENCE TO INDIA

 ARTICLE 3-BANKING CRISES WITH SPECIAL REFERENCE TO INDIA

BY  Dr.Debesh Bhowmik ,PAGE 35-60 

EMERGING ISSUES IN INDIAN BANKING :PERFORMANCE,CHALLENGES AND REFORM

--EDITED BY Dr.ASIM K.KARMAKAR,Dr.MOU ROY,Dr.SAMARJIT DAS

Shandilya Publications,NewDelhi,www.shandilyapublications.com,price 1150/


The book contains 10 important articles on performance of Indian banks,banking reforms,banking crises,systematic risk management,financial sector development,profit frontier public sector banks,credit concentration,micro credit,and architecture of IFRS in banking sector.The paper writers are scholars of India.

I have a paper on  Banking crises with special reference to India which analysed the historical evidences of banking crises since 18^th century in the world as well as in the Indian economy. The causes and impact of the crises were given sufficiently and the wave of crises was shown by capital inflows and number of countries. World wide loss for banking crises was exemplified. Author examined panel regression,cointegration and vector error correction between NPA/advance and GDP of India during 1996-97-2015-16 in six categories of Indian banks and found negative relation .They are cointegrated and VECM is stable and nonstationary with significant error correction process. Government of India and Reserve Bank of India had already implemented some effective policies to curb NPA and recovery of bad loans and also shut down 10 public sector loss making banks in India with closer of chit funds which were proved as fraud.

Key Words-banking crises,panic,wave,capital inflows,non-performing assets,Gross Domestic Product,gross advances,panel regression,panel cointegration,panel vector error correction.

JEL classification-C22,C23,C52,C53,E44,E51,G21,G24