Have public bailouts made banks' loan books safer?

Michael Brei and Blaise Gadanecz

BIS Quarterly Review, 2012

Abstract: In response to the financial crisis, the authorities in a number of countries used public funds to recapitalise their banks. Did a reduction of risk in banks' lending follow these rescue operations? To help answer this question, we analyse the balance sheets and syndicated loan signings of 87 large internationally active banks. As loan signing volumes started diminishing across the board in 2009, our evidence shows that rescued banks did not reduce the risk of their new lending significantly more than non-rescued banks. Our results are relevant for the ongoing assessment of public bank rescue programmes.

JEL-codes: E51 G15 G21 G32 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Have Public Bailouts Made Banks’ Loan Books Safer? (2012)
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