An old, novel idea: introducing G-Pub, an original dataset of public bank formation

Amidst growing financial internationalization, public banks are a reemerging mode of financial governance that can serve as a policy tool for counter-cyclical crisis financing, proactive investment (e.g. green finance), or protectionist lending. Yet no systematic studies examine what leads governments to form public banks in the first place, in part due to a lack of data. This paper introduces an original dataset, conceptual framework, and descriptive empirical insights to serve as the basis for future research. I discuss contending definitions of public banks to advance the more targeted conceptualization of ‘government-initiated public banks’ (G-Pubs), or banks that are formed by governments and remain under government control through ownership and/or management. The dataset includes 1,355 banks and spans 195 countries for the period 1401–2020. Using these data, I test prevailing assumptions suggesting G-Pubs are more likely to form in less developed or more autocratic countries. I show that for the period 1970–2020, G-Pub formation is instead associated with developed democracies. Descriptive analysis prior to the 1970s further supports a more complex view. These findings underscore the need for a renewed research agenda on public banking that considers both domestic and international political economic dynamics, including international diffusion, financial integration, and crisis mechanisms.