ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Yang Chengyu

Role of Banks in Promoting Risky Financial Assets

Based on national-level cross-sectional household data from the India Human Development Survey in 2011–12, this study examines the role of bank branch availability in influencing household investment in risky financial assets. Using propensity score matching to address sample selection bias, we find that the presence of a bank branch within a reachable distance of 5 kilometres has a significantly positive effect on household investment in risky financial assets. Specifically, for every 1,000 households, two households would have invested in risky assets if a bank branch is available within this range. The results are consistent even when using alternative matching algorithms. Additionally, a higher effect is observed for bank fixed deposits, a relatively more secured asset class.