India's Banks : Lending to Productive Firms? /

Capital misallocation is widely thought to be an important factor underpinning productivity and income gaps between advanced and emerging economies. This paper studies how well Indian banks allocate capital across firms with varying levels of productivity. The analysis reveals that the link between...

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Автор: George, Siddharth
Інші автори: Kirti, Divya, Martinez Peria, Soledad, Vijayaraghavan, Rajesh
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2022.
Серія:IMF Working Papers; Working Paper ; No. 2022/073
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Онлайн доступ:Full text available on IMF
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245 1 0 |a India's Banks :   |b Lending to Productive Firms? /  |c Siddharth George, Divya Kirti, Soledad Martinez Peria, Rajesh Vijayaraghavan. 
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520 3 |a Capital misallocation is widely thought to be an important factor underpinning productivity and income gaps between advanced and emerging economies. This paper studies how well Indian banks allocate capital across firms with varying levels of productivity. The analysis reveals that the link between productivity and bank credit growth is weaker for firms with significant ties to public sector banks, especially in years when public sector banks represent a large share of new credit. Large flows of credit to unproductive firms represent important missed growth opportunities for more productive firms. These results suggest that measures to improve governance of public sector banks, potentially including privatization, would help reduce capital misallocation. 
538 |a Mode of access: Internet 
650 7 |a Banks  |2 imf 
650 7 |a Depository Institutions  |2 imf 
650 7 |a Financial Markets and the Macroeconomy  |2 imf 
650 7 |a Micro Finance Institutions  |2 imf 
650 7 |a Mortgages  |2 imf 
700 1 |a Kirti, Divya. 
700 1 |a Martinez Peria, Soledad. 
700 1 |a Vijayaraghavan, Rajesh. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2022/073 
856 4 0 |z Full text available on IMF  |u https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=073  |z IMF e-Library