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
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)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
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)
Persistent link: http://EconPapers.repec.org/RePEc:kap:jfsres:v:45:y:2014:i:3:p:307-340
Ordering information: This journal article can be ordered from
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.
Series data maintained by Sonal Shukla ().