Financial Development, Bank Ownership, and Growth: Or, Does Quantity Imply Quality?

Shawn Cole
Additional contact information
Shawn Cole: Harvard Business School

The Review of Economics and Statistics, 2009, vol. 91, issue 1, pages 33-51

Abstract: In 1980, India nationalized its large private banks. This induced different bank ownership patterns across different towns, allowing credible identification of the effects of bank ownership on financial development, lending rates, and the quality of intermediation, as well as employment and investment. Credit markets with nationalized banks experienced faster credit growth during a period of financial repression. Nationalization led to lower interest rates and lower-quality intermediation, and may have slowed employment gains in trade and services. Development lending goals were met, but these had no impact on the real economy. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2009

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdfplus/10.1162/rest.91.1.33 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
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: http://EconPapers.repec.org/RePEc:tpr:restat:v:91:y:2009:i:1:p:33-51

Ordering information: This journal article can be ordered from
http://mitpress.mit. ... me.tcl?issn=00346535

Access Statistics for this article

The Review of Economics and Statistics is edited by Daron Acemoglu, George J. Borjas, Dani Rodrik and Julio J. Rotemberg

More articles in The Review of Economics and Statistics from MIT Press
Series data maintained by Christopher F. Baum ().