Privatization in banks

privatization performance and efficiency a study of indian banks

However, recapitalizing banks does not seem to be working. Privately-owned firms are found to be significantly more profitable and productive than state-owned and mixed ownership enterprises, but mixed enterprises are no more profitable than SOEs.

Reforms and privatization were also progressively being accepted by the population.

short note on privatization of banking industry

The authors then proceed to use political variables as instruments for the privatization decision, adopting a two-stage least squares treatment effects regression.

We distinguish between two different empirical approaches. This is likely to start protests and political fights all over the nation. One of the first studies to compare SOE and private firm performance is that of Ehrlich et al. La Porta and Lopez-de-Silanes study privatization in Mexico and find that privatized Mexican SOEs rapidly close a large performance gap with industry-matched private firms that had existed prior to divestment.

privatisation of banks advantages and disadvantages
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Why bank privatization may not be the answer