 Why Did Public Banks Lend More During the Global Financial Crisis?Joshua Bosshardt and Eugenio Cerutti No 2020/084, IMF Working Papers from International Monetary Fund 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. Keywords: WP; bank; lending; financial crisis; crisis; bank fundamentals; ownership status; loan portfolio; loans growth; credit crunch; fastest-growing bank; State-owned banks; Bank credit; Global financial crisis of 2008-2009; Loans; Nonperforming loans; Global; global financial crisis; development bank (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2020/084 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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