Banks in the South Asian region are the fulcrum of economic growth and development as they provide means to development credit and working capital, trade and infrastructure finance and are seen as custodians of the trust in the financial system. This paper aims to study the nature of banking sector linkages for the region.,The dependence structure between deposits and lending rates individually for the banks of the South Asian countries are studied using time invariant and time varying family of copula functions. The degree of connectedness is further studied by Diebold and Yilmaz methodology.,Results indicate poor levels of banking integration in the region as the dependence parameter for both deposits and lending rates was around 0 for the sample countries, thereby confirming poor banking sector integration in the region.,Policymakers of the region are interested in the co-movements of the interest rates to understand the cross-sector risk management and any systemic risk pressures for the regional economies. Corporates in these countries are scouting out for competitive borrowing rates to lower their cost of capital.,Rationale for examining the banking sector linkages is that the South Asian countries are at different stages of economic growth and development and this region in particular is the fastest growing region in the world and has largely increased its trade integration with the world albeit having lowest levels of intra-regional trade integration.,This is a first of a kind of studies to examine the banking sector linkages in South Asia.

中文翻译：

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南亚银行业整合的动态：实证研究

南亚地区的银行是经济增长和发展的支点，因为它们为发展信贷和营运资金、贸易和基础设施融资提供手段，并被视为金融体系信任的保管人。本文旨在研究该地区银行业联系的性质。使用时不变和时变 copula 函数族研究了南亚国家银行的存款和贷款利率之间的依赖结构。Diebold 和 Yilmaz 方法进一步研究了连通性程度。,结果表明该地区银行业一体化水平较差，因为样本国家的存款和贷款利率的依赖参数约为 0，从而证实了该地区银行业的一体化程度不高。地区。，该地区的政策制定者对利率的联动感兴趣，以了解跨部门风险管理和地区经济的任何系统性风险压力。这些国家的企业正在寻找具有竞争力的借贷利率以降低资本成本。,检查银行业联系的理由是南亚国家处于不同的经济增长和发展阶段，尤其是该地区是增长最快的地区尽管区域内贸易一体化水平最低，但已大大提高了与世界的贸易一体化程度。这是研究南亚银行业联系的首次研究。