This study analyses the impact of competition on liquidity creation by banks and investigates the dynamics between diversification, liquidity creation and competition for banks operating in India during the period from 2005 to 2018. Using the broad and narrow measures of liquidity creation, an inverse relationship is determined between liquidity creation and competition. The study also indicates a trade-off between pro-competitive policies to improve consumer welfare and the liquidity-destroying effects of competition, and it highlights how diversification affects liquidity creation. Highly diversified banks in India create less liquidity compared with less-diversified banks, both public and private. The liquidity-destroying effects of competition is intensified among highly diversified private banks, which suggest that diversification has not moderated the adverse impact of competition.

JEL Codes: G01, G18, G21, G28

这项研究分析了竞争对银行创造流动性的影响，并研究了多元化，流动性创造与印度在2005年至2018年间运营的银行竞争之间的动态关系。在流动性创造和竞争之间确定。该研究还表明，在提高消费者福利的竞争性政策与竞争对流动性造成破坏的政策之间进行了权衡，并强调了多元化如何影响流动性的创造。与高度分散的公共和私人银行相比，印度高度分散的银行创造的流动性较低。高度多样化的私人银行加剧了竞争对流动性的破坏作用，

JEL代码： G01，G18，G21，G28