![Central Banking](https://www.centralbanking.com/sites/default/files/styles/print_logo/public/2017-03/print-logo.png?itok=_maJqRIT)
RBI paper finds high market power can undermine bank stability
Author documents “inverse U-shaped” relationship, suggesting only some mergers are desirable
![Indian banknotes](/sites/default/files/styles/landscape_750_463/public/2020-08/pexels-photo-2777456.jpeg.webp?h=d4f497dd&itok=qyygrIbq)
Indian banks’ market power is linked to the stability of the financial sector, a working paper published by the Reserve Bank of India finds.
Author Pradip Bhuyan notes the question is significant for India because of the recent “spate of consolidation” among public-sector banks. Since 2017, several of these banks have merged, culminating in a “mega consolidation” in 2020 that merged 10 banks into four.
Bhuyan studies bank balance sheet data for the period from 1994 to 2020. He finds the Indian
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com