The Government’s Role in Government-owned Banks

Chung-Hua Shen (), Iftekhar Hasan and Chih-Yung Lin

Journal of Financial Services Research, 2014, vol. 45, issue 3, 307-340

Abstract: In this study, we reinvestigate the question of whether government banks are inferior to private banks. We use cross country data from 1993 to 2007 to trace the different types of government banks. These types comprise banks that acquire distressed banks, normal banks, or no banks at all. Contrary to common belief, the evidence shows that unless government banks are required to purchase a distressed bank because of political factors (the government’s role), their performances are at par with that of private banks. This fact particularly holds true in countries with poor records on political rights and governance. Copyright Springer Science+Business Media New York 2014

Keywords: Government banks; Political factor; Government role; Merger; Distressed bank; Institutional factor; C23; G21; G28; G34 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10693-013-0168-0 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The government's role in government-owned banks (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jfsres:v:45:y:2014:i:3:p:307-340

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10693

DOI: 10.1007/s10693-013-0168-0

Access Statistics for this article

Journal of Financial Services Research is currently edited by Haluk Unal

More articles in Journal of Financial Services Research from Springer, Western Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().