Faithin Omaha eBook Collection

Download or read book A Comparative Study on Banking Sector Profitability, Credit Risk and Determinants in India and China written by Ulaganathan Subramanian and published by . This book was released on 2014 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper analyzes how bank characteristics and the overall financial environment affect the performance of banks in India and China. Utilizing bank level data, the study examines the performance indicators of banks in India and China during 1998-2009. A variety of internal and external banking characteristics are used to predict profitability. In the literature, bank profitability is usually expressed as a function of internal and external determinants. The internal determinants originate from bank accounts (balance sheets and/or profit and loss accounts) and therefore could be termed micro or bank-specific determinants of profitability. The external determinants are variables that are not related to bank management but reflect the economic and legal environment that affects the operation and performance of financial institutions. A number of explanatory variables have been proposed for both categories, according to the nature and purpose of study.