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A Dual Banking Sector With Credit Unions and Traditional Banks : What Implications on Macroeconomic Performances?

Author

Listed:
  • Thibaud Cargoet

    (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France)

  • Simon Cornée

    (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France)

  • Franck Martin

    (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France)

  • Tovonony Razafindrabe

    (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France)

  • Fabien Rondeau

    (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France)

  • Christophe Tavéra

    (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes, France)

Abstract

Cet article ́etudie les implications macro ́economiques associées à la présence d’un secteur bancaire dual au sein d’une ́economie. Ce secteur regroupe à parts égales des banques mutualistes et coopératives (credit unions) et des banques de type capitaliste (cette situation s’observe notamment pour la France). Nous adoptons un modélisation macroéconomique de type DSGE idans laquelle les banques mutualistes et coopératives sont différenciées des banques traditionnelles de la manière suivante : elles pratiquent une interm ́ediation financière traditionnelle centrée sur le couple crédits/dépôts avec un recours plus faible aux activités de portefeuilles ; elles se concentrent principalement sur le financement des ménages et des petites et moyennes entreprises ; elles ont enfin un pass-through de taux d’int érêt plus faible que les banques traditionnelles. Les simulations du modèle montrent que cette configuration du secteur bancaire diminue le caractère contra-cyclique de la politique mon ́etaire mais elle constitue en revanche un facteur stabilisant pour l’économie. This article studies the macroeconomic implications generated by a dual banking sector. By dual sector, we refer to a banking sector including mutual and cooperative banks (credit unions) and traditional banks operate in substantially equal parts (as the case of France for example). We propose a DSGE macroeconomic model integrating a dual banking sector. Mutual and cooperative banks are differentiated from capitalist banks in the following way: they practice traditional financial intermediation centered on the loan - deposit pair with less recourse to portfolio activities; they mainly focus on financing households and small and medium-sized enterprises; Finally, they have a lower interest rate pass-through than traditional banks. Model simulations show that this configuration of the banking sector reduces the counter-cyclical property of monetary policy, but on the other hand it constitutes a stabilizing factor for the economy.

Suggested Citation

  • Thibaud Cargoet & Simon Cornée & Franck Martin & Tovonony Razafindrabe & Fabien Rondeau & Christophe Tavéra, 2021. "A Dual Banking Sector With Credit Unions and Traditional Banks : What Implications on Macroeconomic Performances?," Economics Working Paper Archive (University of Rennes & University of Caen) 2021-03, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:2021-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Banking sector; Credit Unions; DSGE Model; Monetary Policy;
    All these keywords.

    JEL classification:

    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G2 - Financial Economics - - Financial Institutions and Services

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