Index
Ramesh Chandra Das
(Vidyasagar University, India)
ISBN: 978-1-80382-612-7, eISBN: 978-1-80382-611-0
Publication date: 23 May 2023
This content is currently only available as a PDF
Citation
Das, R.C. (2023), "Index", Growth and Developmental Aspects of Credit Allocation: An inquiry for Leading Countries and the Indian States, Emerald Publishing Limited, Leeds, pp. 221-231. https://doi.org/10.1108/978-1-80382-611-020231012
Publisher
:Emerald Publishing Limited
Copyright © 2023 Ramesh Chandra Das
INDEX
Absa Group
, 13
Absolute convergence
, 107, 125
Absolute β convergence
, 107–109
and σ convergence results
, 116
hypothesis
, 175
results
, 176–182
theory of
, 107
Acceleration Principle
, 135
Adjustment parameters
, 69, 209
Aggregate saving function (S)
, 135
Agricultural sector’s share
, 141–143
Agriculture
, 131, 138, 141
GCF
, 143
and service
, 4
Akaike Information Criterion (AIC)
, 97, 201
Allied sector
, 131
Apex bank
, 3
Asian Giants
, 28, 42
Association of Southeast Asian Nations (ASEAN)
, 193
Asymmetric knowledge
, 2
Augmented Dickey-Fuller (ADF)
, 67, 201
ADF–Fisher Chi-square
, 91
test
, 70, 94
Automated-teller-machine (ATM)
, 5
Bank credit (C)
, 3, 15, 63, 66
in India
, 136
results and discussion on inter-state convergence of level of
, 176–187
Bank for International Settlements (BIS)
, 14
Bank of Brazil, The
, 12
Bank of England, The
, 6
Bank of the United States, The
, 4–5
Banking
process
, 130
reforms
, 10
sector
, 3, 14
statistics
, 131
Banking Association of South Africa (2012)
, 14
Banking funds invested in government securities
correlation and causality analyses
, 164–166
correlation results
, 165
distribution of SCBs’ fund invested in state governments’ securities
, 160–162
investment-to-deposit ratio in states
, 162–163
investments in different government securities
, 159–160
trends of
, 157
Banking transaction
, 131–132, 135, 218
Banking transaction index (BTI)
, 138–140
Banks
, 3, 5, 7–8, 43
agricultural sector’s share
, 141–143
bank-based perspective
, 2
bank-based system
, 3
BTI
, 138–140
data descriptions
, 131–132
in Indian States
, 131
industrial sector’s share
, 143–144
investment in government securities
, 48
measures of concentration in credit
, 145
results of concentration under Herfindahl index
, 147–148
results of CR4 concentration
, 146–147
sector-wise allocations of credit in states
, 140
service sector’s share
, 145
trends of branch expansion of states
, 132–134
trends of credit–deposit ratio of States
, 137–138
trends of growth of credit of SCBs in India
, 136–137
trends of growth of deposit of SCBs of States
, 135–136
Banks Act
, 14
Big banks
, 7
Bivariate non-stationary model
, 69
Board of Governors, The
, 4
Branch
, 13, 130
trends of branch expansion of states
, 132–134
Brazil, credit histories
, 12–13
C4 credit concentration
, 184
Capital Adequacy Norms
, 154
Capital-to-risk weighted asset ratio (CRAR)
, 137, 154
Cash Reserve Ratio (CRR)
, 171
Causality
, 61, 193
(see also Granger causality)
analyses
, 164–166
direction
, 61, 201
one-way
, 62
test
, 100, 208
Central and Eastern Europe (CEE)
, 9
Central Bank of India
, 131
Channelisation of deposits
, 45–46
China
commercial banking system
, 10
credit histories
, 10–11
Chinese economy
, 10
Club convergence
, 109, 176
test
, 184
Coefficient of variations (CV)
, 123, 184
Cointegration
equations
, 95, 97
methodology of
, 67–69
results of
, 203–208
technique
, 60
test results
, 70–74
Commerzbank
, 8
Commodity-producing units
, 138
Competitive system
, 195
Computed correlation coefficients
, 38, 120
Conditional convergence
, 107
results of conditional convergence test
, 122–123
Conditional β convergence
, 109–111
Conselho Monetário Nacional (CMN)
, 12
Convergence
, 172
absolute β convergence
, 107–109
analysis of credit, GDP and HDI of countries
, 106
concept
, 107
conditional β convergence
, 109–111
literature
, 113
neoclassical approach
, 106–107
results and discussions on convergence analysis
, 115
results of absolute β convergence test
, 115–122
results of conditional convergence test
, 122–123
results of sigma convergence test
, 123–125
results under time series approach
, 125–126
sigma convergence
, 111
theories on convergence of income
, 106
time series approach
, 111–113
trends of per capita credit, per capita GDP and HDI of countries
, 113–115
Correlation
analyses
, 164–166
analysis of credit Vis-á-Vis GDP and HDI
, 38–39
coefficients
, 179, 201
of NPA and security investments with GDP and HDI
, 51–53
Country-specific regression
, 53
COVID-19 crisis
, 13
CR4 concentration, results of
, 146–147
Creative destruction
, 2, 192
Credit (C)
, 3, 77, 96, 106, 152, 192, 195, 198
Brazil
, 12–13
China
, 10–11
cointegration and ECM test results
, 70–74
concentration
, 131
convergence of states in India
, 174–175
creation mechanism
, 43–45
descriptive statistics on
, 29–32
disparity and inequality in credit allocations in Indian states
, 184–187
empirical methodology
, 66
equilibrium relations of NPA and investment with
, 90–102
factor
, 65
France
, 8
Germany
, 6–8
Granger causality test results
, 74–77
histories of countries
, 4
India
, 11–12
Indonesia
, 14–15
mean and SD of
, 32–34
measures of concentration in
, 145
methodology of cointegration and error correction mechanism
, 67
methodology of Granger causality test
, 69
methodology of unit root test
, 66–67
impact of NPA and security investment upon credit
, 53
Poland
, 9–10
pooled regression analysis of NPA and investment upon credit of countries
, 56–57
regression analysis of NPA and investment upon credit of countries
, 54
sector-wise allocations of credit in states
, 140–145
South Africa
, 13–14
studies on linkage between financial development and human development
, 62–63
supply side and demand side approaches of linkage
, 61–62
theoretical background on linkage between financial and real sectors
, 60
theoretical model on credit as endogenous institutional factor of growth
, 63–66
trends of countries
, 26–29
trends of credit of countries
, 46–49
trends of growth of credit of SCBs in India
, 136–137
unit root test results
, 70
United Kingdom
, 6
United States of America
, 4–5
Credit elasticity
equilibrium relations of NPA and investment with credit, GDP and HDI
, 90–102
of GDP
, 83
of HDI
, 83
of income and development
, 82
measures and derivations of credit elasticities
, 82–84
run test results
, 84–90
Credit-GDP
, 73–74
Credit–deposit ratio (C-D ratio)
, 4, 130, 138, 141, 152
trends of credit–deposit ratio of states
, 137–138
Credit–HDI
, 73–74, 203
Credit–NSDP
, 203
Cross-country convergence
, 112
Demand following approach (DFA)
, 2, 60–61, 192, 196
Demand side approaches of linkage
, 61–62
Deposits
, 152
of banks
, 164
channelisation of
, 45–46
trends of growth of deposit of SCBs of states
, 135–136
Derivative deposit
, 43
Descriptive statistics on GDP, Credit and HDI
, 29–39
Deutsche Bank, The
, 8
Deutsche Zentral-Genossenschaftsbank (DZ Bank)
, 8
Developed countries
, 15, 19, 34, 49
Developed regions
, 217
Developing countries
, 15, 19
case of
, 20
Development indices
, 35
Dickey-Fuller tests
, 94
Dimension index for ith dimension
, 35
Disparity in credit allocations in Indian states
, 184–187
Divergence
, 172–174
(see also Convergence)
in income
, 106
Domestic credit of countries
, 47
Economic growth
, 192
Economic models
, 192
Economic progress
, 28, 34
Economic Survey of Government of India
, 155
Economists
, 106
Economy productive sectors
, 4
Economy-wide banking system
, 132
Elasticity
, 82
Endogenous growth
theoreticians
, 106
theory
, 63
Endogenous institutional factor of growth, theoretical model on credit as
, 63–66
Engel and Granger (EG)
, 68
cointegration technique
, 67
cointegration test
, 92
method
, 67
residual method
, 203
Equilibrium relations of NPA and Investment with credit, GDP and HDI
, 90
methodology of panel cointegration test
, 92–94
methodology of panel unit roots test
, 91–92
results of panel cointegration test
, 94–97
results of panel unit roots test
, 92
Error correction (EC)
, 96–97
tests
, 203–208
Error correction mechanism (ECM)
, 67, 204
methodology of error correction mechanism
, 67–69
test results
, 70–74
Errors
, 68
Estimated coefficient
, 183
European Union (EU)
, 8
Excess reserve
, 43
Federal Deposit Insurance Corp.
, 5
Federal Reserve, The
, 5
Federal Reserve Notes
, 5
Financial Access Survey (FAS)
, 62
Financial development, studies on linkage between
, 62–63
Financial inclusion process
, 35
Financial institutions
, 11, 192
Financial Sector Regulation Act 9, The (FSR Act) (2017)
, 14
Financial sectors
, 1
theoretical background on linkage between
, 60–62
Financial services perspective
, 3
Financial systems
, 2, 5
of Brazil
, 12
of country
, 170
of South Africa
, 13
FirstRand Ltd
, 13
Fiscal deficit
, 170
Fisher test
, 92
Fisher’s equation
, 139
Fisher–Johansen test
, 95
Food
, 131
food-related products
, 131
Foreign securities
, 159
France, credit histories
, 8
French economy
, 8
G20 Group
, 14
Gender disparity index (GDI)
, 35
German banking system
, 6–7
German crisis
, 32
grounds of German crisis in late 1990
, 29
German economy, The
, 6
German financial system
, 7
German savings banks
, 7
Germany
credit histories
, 6–8
economy
, 7
Gilt-edged securities
, 158
Gini coefficient
, 184
Global economy
, 217
Government debt securities
, 12
Government financial policy
, 15
Government of India, The
, 11, 56
Government securities, trends of banking funds invested in
, 157–166
Granger causality
, 164
analysis
, 67
methodology of
, 69
results of
, 208–214
test results
, 74–77
Gross capital formation (GCF)
, 143
Gross domestic product (GDP)
, 4, 82, 106, 162, 218
correlation analysis of credit Vis-á-Vis HDI and
, 38–39
correlation of credit with GDP and HDI of countries in different phases
, 33
correlation of NPA and security investments with
, 51–53
descriptive statistics on
, 29–32
equilibrium relations of NPA and investment with
, 90–102
mean and SD of
, 32
impact of NPA and security investment upon credit, HDI and
, 53
pooled regression analysis of NPA and investment upon GDP of countries
, 56–57
regression analysis of NPA and investment upon GDP of countries
, 54–56
trends of countries
, 26–29
Gross NPA-to-deposit ratio
, 155
Growth-finance nexus
, 193
Harrod–Domar Growth Model
, 135
Harrod–Domar model
, 107
Head of capital expenditure
, 3
Head of revenue expenditure
, 3
Herfindahl Hirschman Index (HHI)
, 145
Herfindahl index
, 146
results of concentration under
, 147–148
Hindu Growth
, 171
Hindu growth rate
, 11
Historical perspectives of countries
credit histories of countries
, 4–15
data source
, 15–16
major objectives of book
, 20
phase-wise presentation of key variables
, 16–20
Households inter-temporal utility function
, 64
Human development, studies on linkage between financial development and
, 62–63
Human development index (HDI)
, 15, 28, 35, 60, 106, 194, 218
computing HDI
, 36–38
correlation analysis of credit Vis-á-Vis GDP and
, 38–39
correlation of NPA and security investments with
, 51–53
of countries
, 113–115
descriptive statistics on
, 29–32
equilibrium relations of NPA and investment with
, 90–102
mean and SD of HDI of Countries
, 34–36
impact of NPA and security investment upon credit, GDP and
, 53
pooled regression analysis of NPA and investment upon HDI of countries
, 56–57
regression analysis of NPA and investment upon HDI of countries
, 56
trends of countries
, 26–29
Human Development Report (2010)
, 37
Human poverty index (HPI)
, 35
Inclusion of endogenous factors
, 65
Inclusive development
, 35
Inclusive growth
, 35
Income
convergence of states in India
, 171–174
inequality
, 105
theories on convergence of
, 106–113
Index of financial inclusion (IFI)
, 62, 194
India
concepts of NPA in India
, 152–153
credit histories
, 11–12
factors affecting NPA in India
, 153–154
norms for asset to be non-performing in India
, 154–155
real cause of concern
, 166
trends of banking funds invested in government securities
, 157–166
trends of NPA
, 155–157
India Development Report (IDP)
, 195
Indian economy
, 130, 170
Indian financial system
, 11, 129–130, 170
Indian GDP
, 60
Indian government securities
, 160
Indian States
absolute β convergence results
, 176–182
credit convergence of
, 174–175
data and methodology
, 175–176
disparity and inequality in credit allocations in Indian states
, 184–187
empirical findings
, 197
graphical presentation of trends
, 197–198
income convergence of
, 171–174
mean and pair-wise correlation results
, 198–201
results and discussion on inter-state convergence of level of bank credit
, 176
results of cointegration and error correction tests
, 203–208
results of Granger causality test
, 208–214
results of stationarity test
, 201–203
review of existing literature
, 171
sigma convergence results
, 182–184
theoretical foundation of interrelationships
, 195–196
Indirect deposit
, 43
Individual unit root process
, 92
Indonesia
banks and financial markets
, 15
credit histories
, 14–15
financial system
, 15
Indonesian economy
, 14
Industrial sector
, 131
Industrial Sector’s Share
, 143–144
Industry
, 4, 138
Inequality
in credit allocations in Indian states
, 184–187
notion of
, 111
Inequality-adjusted human development index (IHDI)
, 37
Institutional factor
, 60
Inter-state convergence of level of bank credit, results and discussion on
, 176–187
International Monetary Fund (IMF)
, 12
International Financial Statistics
, 16
Interrelationships, theoretical foundation of
, 195–196
Inventive entrepreneur’s business operations
, 2
Investment
, 96
of banking funds
, 158
by banks
, 42
with credit, GDP and HDI, equilibrium relations of NPA and
, 90–102
in different government securities
, 159–160
Investment-to-deposit ratio in states
, 162–163
Johansen test for cointegration
, 94
Kao residual base test
, 95
Keynesian product market equilibrium
, 135
Kreditanstalt für Wiederaufbau (KfW)
, 8
Kwiatkowski–Phillips–Schmidt–Shin stationarity (KPSS stationarity)
, 174
Lagrange multiplier unit root test
, 174
Latin America (LatAm)
, 12
Law and finance
, 3
Legal tender
, 5
Lending system of banking institutions
, 152
Liberalization regime
, 130
Linkage, supply side and demand side approaches of
, 61–62
Log CV
, 182
Logarithmic values of coefficient of variations (LogCV)
, 175
Long-run relation
, 96, 100, 204, 208
for NPA
, 99
for NPA and credit
, 98
Low growth economy
, 171
Machineries
, 6
Macroeconomic indicators
, 66
Manufacturing sector
, 131
Mean
, 198–201
of credit of countries
, 32–34
of GDP of countries
, 32
of HDI of countries
, 34–36
mean, SD and correlation coefficients
, 50
of NPA and security investments
, 49–51
SD and mean difference results for variables
, 30–31
Micro-, small-and medium-sized enterprises (MSMEs)
, 15
Mixed economic system
, 9
Monetary policy
, 13
Money multiplier
, 44–45
Napoleonic Wars
, 6
Narasimham Committee
, 154
on banking sector reforms
, 155
Narasimham Committee Report
, 153
National Bank, The
, 9
National Bank of Poland, The (NBP)
, 9
National Monetary Council, The
, 12
Nationalization policy
, 130
Nationalization regime
, 130
Nedbank Group
, 13
Neoclassical growth model
, 106
Neoclassical model
, 63
Net state domestic product (NSDP)
, 194, 198
Non-banking financial companies (NBFCs)
, 11
Non-linear differential equation
, 65
Non-performing assets (NPA)
, 14–16, 42, 96
channelisation of deposits
, 45–46
concepts in India
, 152–153
correlation with GDP and HDI
, 51–53
credit creation mechanism
, 43–45
factors affecting NPA in India
, 153–154
GDP and HDI, equilibrium relations of NPA and investment with credit
, 90–102
impact upon credit, GDP and HDI
, 53
investment & credit
, 94
investment & GDP
, 94
investment & HDI
, 94
mean and SD of
, 49–51
pooled regression analysis upon credit, GDP and HDI of countries
, 56–57
regression analysis upon credit of countries
, 54
regression analysis upon GDP of countries
, 54–56
regression analysis upon HDI of Countries
, 56
theoretical structure
, 43
trends of
, 155–157
trends of credit, NPA and security investments of countries
, 46–49
Non-performing head
, 4
Non-scheduled commercial banks
, 131
Norms for asset to be non-performing in India
, 154–155
North America
, 217
Office of the Comptroller of the Currency (OCC)
, 5
Ordinary least square (OLS)
, 53, 201
Organisation for Economic Co-operation and Development (OECD)
, 35
Organized banking system
, 131
Organized sector
, 11
Pair-wise correlation results
, 198–201
Panel cointegration test
Kao and Johansen cointegration test results for sets of variables
, 95
methodology of
, 92–94
results of
, 94
Panel unit root process
, 125
Panel unit roots test
indicators at first differences
, 93
methodology of
, 91–92
results of
, 92
Pearson’s product–moment correlation coefficient
, 118
Pearson’s r
, (see Pearson’s product–moment correlation coefficient)
People Bank of China, The (PBC)
, 10
Per capita credit, trends of
, 113–115
Per capita GDP (PCGDP)
, 29, 35
trends of
, 113–115
Planned economic development process
, 130
Planning Commission of the Government of India
, 143
Poland, credit histories
, 9–10
Pooled Regression
, 54
Pooled regression analysis of NPA and investment upon credit, GDP and HDI of countries
, 56–57
Post-reform phases
, 197, 201
Post-reform regime
, 147
PP–Fisher Chi-square
, 91
Pre-reform phases
, 197, 201
Primary deposit
, 43
Production function
, 65, 195
of economy
, 63
Product–moment correlation of NPA
, 51
Product–moment formula
, 38
Prudential Accounting Norms
, 154
Prudential Norms
, 154
Public debt
, 158
Purchasing power parity (PPP)
, 36
Quantity of Money
, 139
Real sectors, theoretical background on linkage between
, 60–62
Reform process
, 143, 171
Regression
analysis of NPA and investment upon credit of countries
, 54
analysis of NPA and investment upon GDP of countries
, 54–56
analysis of NPA and investment upon HDI of countries
, 56
equation
, 111, 182, 201, 203
model
, 109
Relationships
, 82
Reserve Bank of India (RBI)
, 11, 130–131, 153
Report on Currency and Finance
, 158
Reserve Bank of India Act (1934)
, 11, 131
Reserve–deposit ratio (rd)
, 43–45
Run test results
, 84–90
for countries in different phases
, 86–87
Scheduled commercial banks (SCBs)
, 131, 152, 195
distribution of SCBs’ fund invested in state governments’ securities
, 160–162
in India
, 171
trends of growth of credit of SCBs in India
, 136–137
trends of growth of deposit of SCBs of states
, 135–136
Scheduled of RBI Act (1934)
, 131
Schwarz Information Criterion (SIC)
, 97
Securities market
, 2
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, The (2002) (SARFAESI Act)
, 3, 154
Security investments
, 152
correlation with GDP and HDI
, 51–53
impact upon credit, GDP and HDI
, 53
mean and SD of
, 49–51
pooled regression analysis upon credit, GDP and HDI of countries
, 56–57
regression Analysis upon credit of countries
, 54
regression analysis upon GDP of countries
, 54–56
regression analysis upon HDI of Countries
, 56
trends of security investments of countries
, 46–49
Service sectors
, 138
in India
, 145
share
, 145
Shocks
, 68
Short-run causality
, 97
Short-run Causality Test Results
, 100–102
Short-run dynamics
, 68
Short-run interplay
, 75
Sigma convergence (σ convergence)
, 111
results
, 123–125, 182–184
test
, 175
Significant error correction results
, 98
Small and medium enterprises (SMEs)
, 14
Social accountants
, 192
Solow’s residual growth accounting formula
, 195
Solow–Swan fundamental growth equation
, 107
Solow–Swan model
, 107
South Africa (SA)
, 13
credit histories
, 13–14
South African banking system
, 14
South African financial institutions
, 14
South African Reserve Bank (SARB)
, 13
Speed of convergence concept
, 107
Stable interest
, 45
Standard Bank Group
, 13
Standard deviations (SD)
, 26, 118
of Credit of countries
, 32–34
of GDP of Countries
, 32
of HDI of countries
, 34–36
mean, SD and correlation coefficients
, 50
mean and mean difference results for variables
, 30–31
of NPA and Security Investments
, 49–51
Standard normal distribution
, 85
State credit
, 132
State Deposit
, 132
State domestic product (SDP)
, 172
State governments’ securities, distribution of SCBs’ fund invested in
, 160–162
States
, 152, 161
fiscal positions of
, 162
and UT
, 155
Stationarity test, results of
, 201–203
Statutory liquidity ratio (SLR)
, 48, 158, 171
Steam engines
, 6
Subjective function
, 64
Supply leading approach (SLA)
, 2, 60–61, 192
Supply side approaches of linkage
, 61–62
Sustainable Development
, 35
Tamil Nadu (TN)
, 176
Tarapore Committee
, 156
Testing techniques for panel unit roots
, 112
Textile equipment
, 6
Theory of Industrial Organization, The
, 152
Time series approach
, 111–113
panel unit root test results at first differences of variables
, 126
results under
, 125–126
Tool-making
, 6
Top 4-state concentration ratio
, 146
Total credit (C)
, 140
Total factor productivity (TFP)
, 143
Total India Govt. securities
, 159
Two-factor model
, 195
Two-sector closed economy
, 64
Two-step residual tests
, 92
Unconditional convergence
, 107
Union territories (UTs)
, 131, 152
Unit root test
(see also Panel unit roots test)
for credit, GDP and HDI in levels and first differences
, 71
methodology of
, 66–67
results
, 70
United Kingdom, credit histories
, 6
United Nations Development Program (UNDP)
, 28, 195
Human Development Report Office
, 36
United States of America, credit histories
, 4–5
Unorganized sector
, 11
US Dollars (USD)
, 12, 26
US economy
, 5
US Securities and Exchange Commission (SEC)
, 5
Utility function
, 64
Variable Reserve Ratio
, 136
Variance of number of runs
, 85
Vector autoregression (VAR)
, 90, 96
Vector error correction model (VECM)
, 90, 96–97
results
, 98–99
short-run causality test results
, 100–102
Wald test statistic
, 100
Wald–Wolfowitz runs test
, 84
West Bengal (WB)
, 176
Western economic power house
, 10
Western Europe
, 217
Without intercept test
, 125
World Bank
, 9, 12, 15, 170
World Economic Forum (WEF)
, 14
World Trade Organisation (WTO)
, 11
- Prelims
- Chapter 1: Historical Perspectives of the Countries
- Chapter 2: Trends of the Variables and Descriptive Statistical Analysis
- Chapter 3: Issues of Non-Performing Assets, Security Investments Vis-á-Vis Credit, GDP and HDI
- Chapter 4: Linkage of Credit with Income and Development of the Countries
- Chapter 5: Credit Elasticity and Equilibrium Relations of NPA and Investment with Credit, GDP and HDI
- Chapter 6: Convergence Analysis of Credit, GDP and HDI of the Countries
- Chapter 7: Branch, Deposit and Credit of Banks in Indian States
- Chapter 8: Trends of Bank Credit, NPA and Government Security Investments in India
- Chapter 9: Credit Convergence and Credit Inequality in Indian States
- Chapter 10: Linkages of Bank Credit with Output and HDI of the Indian States
- Chapter 11: Concluding Observations
- Index