Effects of financial statement and macroeconomic factors on risk measures of banks in India

This paper aims to analyse the effects of financial statement indicators and off-balance sheet items affecting risk measures among Indian banks employing both panel data regression a non-parametric decision tree approach. We explore bank size, leverage, exposure contingent liabilities including derivatives usage macroeconomic factors on for banks. In this paper, it is also aimed examine major liberalization policy period in domestic market India that started mid-1990s ended around 2004 as well impacts 2008 global crisis operating India. As measures, we present comparative analysis liquidity, solvency, interest rate across public (government) private ownership categories. Main findings from our study demonstrate (i) significant impact capital adequacy size all (ii) (including usage) at observed significantly asset management measure liquidity solvency banks, (iii) GDP growth liability risk, (iv) found have but weak effect (v) category (government owned versus sector banks) finally (vi) reforms had highly