We study the impact of a government-mediated takeover of weak small banks by stronger large banks in India during the recent banking crisis on loan performance. Our within borrower-time and between banks tests show a 25% reduction in delinquency. Evidence on mechanisms suggests that borrowers...

We ask whether the sensitivity of monetary policy shocks to inflation expectations, growth, and inflation changes as a result of adopting the inflation targeting regime in India. We use state-level variation in inflation and inflation expectations and bank-level variation in their propagation of...