The synchronised movement of BSE and Nasdaq has often been interpreted as an indication of integr... more The synchronised movement of BSE and Nasdaq has often been interpreted as an indication of integration catching up with the Indian financial markets. The authors have looked into the nature of relationship between the daily share price in BSE and NSE on the one hand and Nasdaq and New York Stock Exchange on the other, for 1999-2000 through 2000-2001 and have found a unidirectional causality from Nasdaq to BSE or NSE. The relationship as well as direction of causation also holds good for the technology segment of the New York Stock Exchange and BSE or NSE. However, domestic prices of technology stocks and overall domestic share prices were found to be independent of each other.
With the turn of the century, external commercial borrowings (ECB) has assumed prominence in Indi... more With the turn of the century, external commercial borrowings (ECB) has assumed prominence in India’s capital account and evolved as a preferred medium of overseas borrowing of select corporates. It accounts for about two-fifths of India’s external debt in 2015. The objective of this paper is to study the trends, composition, and determinants of ECB in the Indian context for the period 2000 to 2015. It contributes to the extant literature in a number of ways. First, unlike other scholarly in the Indian context, this study focuses exclusively on ECB, and not as a constituent of capital flows. Second, it weaves the macroeconomic trends and changes in the regulatory regime, with ECB flows, covering the pre and post global crisis period. Finally, employing the Johansen cointegration and the error correction model, the paper investigates the role of domestic and global factors in influencing the ECB flows to India. Results suggest that while both the domestic and international factors sig...
The article traces the development of banking in India since independence and raises certain issu... more The article traces the development of banking in India since independence and raises certain issues relevant to the sector at the present juncture
The new Basel accord is slated to come into effect in India around 2007 raising the question of h... more The new Basel accord is slated to come into effect in India around 2007 raising the question of how the revised standards will influence bank behaviour. Using a simple theoretical model, it is shown that the revised accord will result in asymmetric differences in the efficacy of monetary policy in influencing bank lending. This will, however, depend on a number of factors, including whether banks are constrained by the risk-based capital standards, the credit quality of bank assets and the relative liquidity of banks’ balance sheets. The basic model is empirically explored using data on Indian commercial banks for the period 1996-2004. The analysis indicates that the effect of a contractionary monetary policy will be significantly mitigated provided the proportion of unconstrained to constrained banks in the system is significantly high.
This article seeks to explore the relationship between the global financial crisis (2007–2009) an... more This article seeks to explore the relationship between the global financial crisis (2007–2009) and the East Asian crisis (1997–1999) via the contribution of select East Asian countries, which led to the formation of the ‘global imbalance’, that is, experience of substantial and consistent current account surplus. Taking a cue from Bernanke’s ‘savings glut’ hypothesis, which has held ‘global imbalance’ to be a factor behind the global financial crisis, specifically, the article argues that in these countries, the nature of current account balance has undergone a sea change since the end of the 1990s. They also accumulated a substantial amount of foreign exchange reserves since then along with a major shift of trade regime and consequent trade surplus in all these countries. The article conjectures that the mishandling of the rescue package by International Monetary Fund could have induced them to go aggressively for accumulation of forex reserves. Thus, the two crises separated by a ...
The synchronised movement of BSE and Nasdaq has often been interpreted as an indication of integr... more The synchronised movement of BSE and Nasdaq has often been interpreted as an indication of integration catching up with the Indian financial markets. The authors have looked into the nature of relationship between the daily share price in BSE and NSE on the one hand and Nasdaq and New York Stock Exchange on the other, for 1999-2000 through 2000-2001 and have found a unidirectional causality from Nasdaq to BSE or NSE. The relationship as well as direction of causation also holds good for the technology segment of the New York Stock Exchange and BSE or NSE. However, domestic prices of technology stocks and overall domestic share prices were found to be independent of each other.
With the turn of the century, external commercial borrowings (ECB) has assumed prominence in Indi... more With the turn of the century, external commercial borrowings (ECB) has assumed prominence in India’s capital account and evolved as a preferred medium of overseas borrowing of select corporates. It accounts for about two-fifths of India’s external debt in 2015. The objective of this paper is to study the trends, composition, and determinants of ECB in the Indian context for the period 2000 to 2015. It contributes to the extant literature in a number of ways. First, unlike other scholarly in the Indian context, this study focuses exclusively on ECB, and not as a constituent of capital flows. Second, it weaves the macroeconomic trends and changes in the regulatory regime, with ECB flows, covering the pre and post global crisis period. Finally, employing the Johansen cointegration and the error correction model, the paper investigates the role of domestic and global factors in influencing the ECB flows to India. Results suggest that while both the domestic and international factors sig...
The article traces the development of banking in India since independence and raises certain issu... more The article traces the development of banking in India since independence and raises certain issues relevant to the sector at the present juncture
The new Basel accord is slated to come into effect in India around 2007 raising the question of h... more The new Basel accord is slated to come into effect in India around 2007 raising the question of how the revised standards will influence bank behaviour. Using a simple theoretical model, it is shown that the revised accord will result in asymmetric differences in the efficacy of monetary policy in influencing bank lending. This will, however, depend on a number of factors, including whether banks are constrained by the risk-based capital standards, the credit quality of bank assets and the relative liquidity of banks’ balance sheets. The basic model is empirically explored using data on Indian commercial banks for the period 1996-2004. The analysis indicates that the effect of a contractionary monetary policy will be significantly mitigated provided the proportion of unconstrained to constrained banks in the system is significantly high.
This article seeks to explore the relationship between the global financial crisis (2007–2009) an... more This article seeks to explore the relationship between the global financial crisis (2007–2009) and the East Asian crisis (1997–1999) via the contribution of select East Asian countries, which led to the formation of the ‘global imbalance’, that is, experience of substantial and consistent current account surplus. Taking a cue from Bernanke’s ‘savings glut’ hypothesis, which has held ‘global imbalance’ to be a factor behind the global financial crisis, specifically, the article argues that in these countries, the nature of current account balance has undergone a sea change since the end of the 1990s. They also accumulated a substantial amount of foreign exchange reserves since then along with a major shift of trade regime and consequent trade surplus in all these countries. The article conjectures that the mishandling of the rescue package by International Monetary Fund could have induced them to go aggressively for accumulation of forex reserves. Thus, the two crises separated by a ...
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