Alejandro Micco, Ugo Panizza|
Inter-American Development Bank (IDB)|
Bank Ownership and Lending Behavior
Printed: Yes
This publication seeks to examine whether bank ownership correlates with bank lending over the business cycle. The authors find state-owned banks are less responsive to macroeconomic shocks than private banks, and are therefore able to undertake a credit-smoothing role in the economy. The paper suggests this behavior is due to state-owned banks having a credit-smoothing function as a defined objective, and is not due to "lazy" public bank managers.
Report type
Partner Resources
Themes
State owned Financial Institutions
Region
Latin America & the Caribbean (LCR)
