Title: Measurement of GVA in Indian banks: some preliminary results

Authors: N.K. Unnikrishnan, Balwant Singh

Addresses: Department of Statistics and Information Management, Reserve Bank of India, BK Complex, Bandra East, Mumbai 400 051, India. ' Department of Statistics and Information Management, Reserve Bank of India, BK Complex, Bandra East, Mumbai 400 051, India

Abstract: Measurement of Gross Value Added (GVA) in the banking sector is still a debatable and unresolved issue. Current proposals for measuring GVA are the following: SNA93|s FISIM approach; user cost of money approach promoted by a set of researchers led by Barnett (1978) and Fixler (1993); margin industry approach suggested by Triplett and Bosworth (2004). Each of the method has merits and lacunae, especially for measurement of GVA for a developing country like India. Against this background, the paper examines relevance of these approaches vis-a-vis output of banks as perceived in the theoretical banking models.

Keywords: FISIM; financial intermediary services indirectly measured; bank functions; user cost of money; System of National Accounts; SNA dilemma; gross value added; GVA; banking models; margin industry.

DOI: 10.1504/IJEPEE.2010.035183

International Journal of Economic Policy in Emerging Economies, 2010 Vol.3 No.3, pp.295 - 310

Published online: 11 Sep 2010 *

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