ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Does Competition Increase Bank Risk in India?

Using a sample of commercial banks in India, we examine the effect of competition on bank risk and then assess whether this effect is influenced by equity capital ratio and deposit share. Two main results emerge. First, greater competition increases insolvency risk, earnings volatility, net non-performing loan ratio, and gross non-performing loan ratio. However, competition does not affect total return risk, systematic risk, or unsystematic risk. Second, greater equity capital ratio reduces the effect of competition on insolvency risk, while greater deposit share increases it.

Data Discrepancies between National Surveys and Official Reporting

The growing discrepancies between the survey and official data have become a serious issue in recent years. This has allowed researchers, administrators, policymakers, and individuals to take opposite positions on policies, programme or even the political regimes. It is in such a context that this article looks at some of the data anomalies in institutionalised surveys and official sources.

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