Does Basel III – Liquidity Coverage Ratio Affect the Profitability of Indian Public Sector Banks
Bibliographic Data
| ID | 12326467 |
|---|---|
| Authors | Shrujan Rajdeep (0000-0003-0517-1960, Department of Economic Sciences, Indian Institute of Science Education and Research, Bhopal, Madhya Pradesh, India), Biswajit Patra (0000-0002-1685-7303, Department of Economic Sciences, Indian Institute of Science Education and Research, Bhopal, Madhya Pradesh, India, corresponding author) |
| Year | 2023 |
| Volume | 16 |
| Issue | 4 |
| Pages | 639-658 |
| Publication date | 2023-10-13 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Millennial Asia (JOURNAL) |
| Journal identifiers | ISSN: 2321-7081 • E-ISSN: 0976-3996 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/09763996231192027 |
| OpenAlex | W4387641247 |
| Language | EN |
| Citations received | 1 |
| References cited | 26 |
The article analyses the interrelation between the Liquidity Coverage Ratio (LCR) and the profitability of Indian public sector banks from March 2015 to March 2022. It uses the panel data technique to explain these relations. Further, this article also looked at the interactive effect of LCR through advances and the interest rate. It has gone through pre- and post-diagnostic checks finalizing the model and variables. The findings of the result surprisingly imply that Basel III regulatory directives like LCR positively impact the bank profitability in India rather than general apprehension about the negative impact. However, the interactive effects of LCR through advances negatively influence the banks’ profitability. Variables such as deposits, Economic Policy Uncertainty (EPU) and Gross Domestic Product (GDP) have no statistically significant relation with banks’ profitability. This article recommends that Basel III guidelines should not be looked at negatively for the performance of banks
Basel III · Business · Capital requirement · Econometrics · Economics · Financial system · Gross domestic product · Incentive · Liquidity risk · Macroeconomics · Market economy · Market liquidity · Monetary economics · Net interest margin · Panel data · Profitability index · Return on assets · Banking stability, regulation, efficiency · Corporate Finance and Governance · Working Capital and Financial Performance · Finance
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |