Download or read book Commercial Banks and Monetary Policy in India written by Partha Ray and published by Academic Foundation. This book was released on 2008 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: Set against a backdrop of financial-sector reforms in India, this analysis explores theories and empirical evidence regarding the behavior of commercial banks and their reactions to centralized monetary policy. A comprehensive account of the credit channels of monetary transmission is presented along with observations of the modified IS-LM model within the independent banking sector. Progressive issues such as future consolidation of the banking sector are also addressed. Ultimately, not all commercial banks react uniformly to monetary policy, as ownership, size, liquidity, and capitalization play key roles in determining individual responses.