The impact of entry of foreign banks on credit access: An empirical study on Indian economy

Abstract

The main aim of the study is to investigate the credit access to firms in India in the post entry of the foreign banks. A Panel data was constructed for 5454 firms across districts for 16 years period from 1999 to 2014 and analysed through dynamic panel data estimator GMM. The results of the study depicts that the credit access to firms in India have depleted after foreign banks entry and foreign banks do follow their clients. However, there were no sign of cherry picking behaviour by foreign banks in terms of credit access to firms in India. Serials Publications.