A Reappraisal of State-Owned Banks

Eduardo Levy-Yeyat (), Alejandro Micco () and Ugo Panizza
Authors registered in the RePEc Author Service: Eduardo Levy Yeyati

Economía Journal, 2007, vol. Volume 7 Number 2, issue Spring 2007, 209-259

Abstract: We revisit the public banks debate, survey the theoretical arguments and test the robustness (and expand) the existing empirical evidence. While we find some support for the view that public banks do not allocate credit optimally, we also report indicative evidence that they exert a positive influence on private bank efficiency, and may contribute to reduce credit procyclicality. Ultimately, we find that the recent criticism to public banks has generally been based on inconclusive cross-country evidence. More specific bank-level research is still needed to substantiate a case for or against public banks in developing economies.

Keywords: Banking; Privatization; Public banks; Financial development; Latin America (search for similar items in EconPapers)
JEL-codes: G21 H11 O16 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (17)

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Working Paper: A reappraisal of state-owned banks (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000425:008639

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