0.082 *** (0.030)
0.073 *** (0.027)
-0.073 * (0.040)
0.020 * (0.011)
Intere rate (residual)
Average loan size:
Small scale industry
Trade, transport and finance
Table 4: Estimate of the Causal Effect of Nationalization on Lending Estimate of Discontinuityb
Share of bank's credit to: Agriculture
Sources: Based on authors' calculations, using credit data from the 1992 and 2000 Basic Statistical Returns, from the Reserve Bank of India.
a The relationship between bank lending behavior and bank size was estimated according to the following equation:
i 1size i 1Nati 2Natb size b i
Sizei is the log of the banks deposits in 1980, while Nati is a dummy
varaible taking the value of one if the bank was larger than the nationalization cutoff, and zero otherwise.
i is the estimated share of credit bank i lends to a specific sector, after
controlling for a district fixed effect. b The table presents the estimate and standard error of the discontinuity:
1 14. 5 2 c Figures for government lending in 2000 were not available.