Siddharth Vij is a doctoral student in Finance at New York University’s Stern School of Business. His research interests are in banking, corporate finance and emerging markets. Prior to his graduate studies, he was a researcher at the Centre for Analytical Finance at Indian School of Business, Hyderabad. He holds a Post Graduate Diploma in Management from Indian Institute of Management, Bangalore and a Bachelor's (Electrical and Electronics Engineering) from National Institute of Technology, Karnataka.
Are banks responsive to credit demand shocks in rural India?
05 Oct 2015
The output of Kharif crops is estimated to decrease by about 2% this year due to deficient monsoon rains in some Indian states. How responsive are commercial banks to a credit demand shock in rural India? Analysing data on rainfall and agricultural credit during 1993-2010, this column finds that banks increase the supply of agricultural credit to farmers following a drought, but that the additional credit is directed towards existing customers.
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