Intergovernmental councils in Spain: Challenges and opportunities in a changing political context

ABSTRACT

This paper reviews the most important characteristics and of the Spanish Intergovernmental Councils (IGCs) and theorizes about the effect of the increasing fragmentation of the party system on the nature and dynamics of multilateral bargaining in IGCs. The essential argument is that party system fragmentation may have an impact on IGCs through its effect on the formation of minority and coalition governments. These types of governments may put an end to the two-bloc confrontation, bring to the system higher levels of party congruence between levels of government and lower the costs of compromise, three factors that may help to grease the bargaining process and, in turn, enhance the achievement of intergovernmental cooperation agreements. The positive effect will be conditional on several factors, namely the ideological coherence of inter-party alliances, the predominant type of government in the system (coalition or single-party minority) and the duration of governments.     

Asset quality determinants of Indian banks: Empirical evidence and policy issues

The Indian banking industry has been suffering from a huge number of nonperforming loans, and the loan asset quality has been deteriorated over the years. This has led to significant capital erosion of many banks in India. The surge in corporate defaults leading to an enormous rise in nonperforming loan assets has been impairing the performance of Indian banking industry in particular and economic growth in general. Hence, it is intuitive to ask what are the determinants of poor asset quality of Indian banks. To answer this question, using a sample of 47 commercial banks over a sample period of 2000 to 2014, our study examines the bank‐, industry‐, and macroeconomic‐specific determinants of asset quality of Indian banks. Our empirical analysis also accommodates the impact of different ownership structures (public and private sector) and the impact of financial crisis while analysing the determinants of poor asset quality of Indian commercial banks. Results reveal that bank‐, industry‐, and macroeconomic‐specific factors are responsible for the burgeoning nonperforming loan assets of Indian commercial banks. The results are qualitatively similar across different ownership structures. The findings suggest that forecasting models for nonperforming assets should also consider macroecomomic‐ and industry‐specific factors along with the bank‐ specific factors.