Ownership Effects on Credit Risk Management Strategic Decisions
Author: Anju Arora
Publisher:
Published: 2014
Total Pages:
ISBN-13:
DOWNLOAD EBOOKThe present study attempts to investigate the impact of bank ownership on Credit Risk Management (CRM) strategic decisions in Indian banking sector by using primary data regarding CRM strategic decisions of 24 public sector banks and 11 Indian private sector banks. The study observes that CRM strategic decisions are not significantly influenced by bank ownership, except with regard to the decision regarding the unit responsible for framing CRM policy. Apparent variations in strategic decisions are observed between public sector and private sector banks with regard to some issues. The study concludes that public sector banks prefer centralization of authority in strategic decision making. It also identifies the relatively weak areas that the sample banks should focus upon to strengthen their CRM framework. Thus, the findings of the study make important contribution to the ongoing debate on the impact of bank ownership on risk management practices.