success of banking reforms in India where significant banking reforms have been introduced since 1990s. Using the argument … that well-functioning credit markets would reflect a bank channel for monetary policy at work, we test whether a change in … and the associated change in interest rate does not affect change in bank credit, change in total debt and the proportion …

findings suggest that high capital requirements and large bank size do not reduce default risk, whereas high profitability and … findings are relevant to bank managers, investors and bank regulators, in formulating effective credit policies and investment …