A reappraisal of state-owned banks

We revisit the public banks debate, survey the theoretical arguments and test the robustness (and expand) the existing empirical evidence. While we find some support for the view that public banks do not allocate credit optimally, we also report indicative evidence that they exert a positive influence on private bank efficiency, and may contribute to reduce credit procyclicality. Ultimately, we find that the recent criticism to public banks has generally been based on inconclusive cross-country evidence. More specific bank-level research is still needed to substantiate a case for or against public banks in developing economies.

Publication year:
In: Economía. - Vol. 7(2007), No. 2, p. 209-247

Note: The status of this file is: restricted

 Record created 2017-10-03, last modified 2018-01-28

Download fulltextPDF
External links:
Download fulltextFulltext
Download fulltextFulltext
Rate this document:

Rate this document:
(Not yet reviewed)