IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2020-084.html
   My bibliography  Save this paper

Why Did Public Banks Lend More During the Global Financial Crisis?

Author

Listed:
  • Joshua Bosshardt
  • Mr. Eugenio M Cerutti

Abstract

During the Global Financial Crisis (GFC), state-owned or public banks lent relatively more than domestic private banks in many countries. However, data limitations have hindered a thorough assessment of what led public banks to better maintain lending during the GFC. Using a novel bank-level dataset covering 25 emerging market economies, we show that public banks lent relatively more during the GFC because they pursued an objective of helping to stabilize the economy, rather than because they had superior fundamentals or access to public or depositors’ funding. Nonetheless, their countercyclical behavior seems unique to the GFC rather than a regular characteristic of public banks before and after the GFC.

Suggested Citation

  • Joshua Bosshardt & Mr. Eugenio M Cerutti, 2020. "Why Did Public Banks Lend More During the Global Financial Crisis?," IMF Working Papers 2020/084, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2020/084
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=49470
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cerutti, Eugenio & Casanova, Catherine & Pradhan, Swapan-Kumar, 2023. "Banking across borders: Are Chinese banks different?," Journal of Banking & Finance, Elsevier, vol. 154(C).
    2. Catherine Casanova & Mr. Eugenio M Cerutti & Swapan-Kumar Pradhan, 2024. "Chinese Banks and Their EMDE Borrowers: Have Their Relationships Changed in Times of Geoeconomic Fragmentation?," IMF Working Papers 2024/205, International Monetary Fund.
    3. Babasyan, Davit & Gu, Yunfan & Melecky, Martin, 2023. "Late banking transitions: Comparing Uzbekistan to earlier reformers," World Development Perspectives, Elsevier, vol. 30(C).
    4. Borsuk, Marcin & Kowalewski, Oskar & Pisany, Paweł, 2024. "State-owned banks and international shock transmission," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    5. Susamto, Akhmad Akbar & Octavio, Danes Quirira & Risfandy, Tastaftiyan & Wardani, Dyah Titis Kusuma, 2023. "Public ownership and local bank lending at the time of the Covid-19 pandemic: Evidence from Indonesia," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    6. Bertay,Ata Can & Calice,Pietro & Diaz Kalan,Federico Alfonso & Masetti,Oliver, 2020. "Recent Trends in Bank Privatization," Policy Research Working Paper Series 9318, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2020/084. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.