A Liquidity Mismatch Index (LMI) for Indian Banks

This paper constructs a liquidity mismatch index for domestic Indian banks using annual data from 2011 to 2022. The findings show that state-owned banks, on average, exhibit higher liquidity mismatches than private banks. Regression results indicate that liability-side liquidity pressures are not offset by additional asset-side buffers. The study highlights key policy implications for improving liquidity risk management.