 Long-term finance provision: National development banks vs commercial banksBo Hu, Alfredo Schclarek (), Jiajun Xu and Jianye Yan World Development, 2022, vol. 158, issue C Abstract: Despite its practical significance in promoting long-term economic growth, long-term finance is often in short supply, especially in developing countries. Governments in both developed and developing countries have established national development banks (NDBs) to provide much-needed long-term loans. We have built the first database on NDBs worldwide to systematically examine whether NDBs lend longer than commercial banks in deciding the maturity of their loans. We find that long-term loans constitute a larger proportion of the total loan portfolio in NDBs than that in commercial banks in general and privately owned commercial banks in particular. This result is statistically significant after controlling for country- and bank-level factors. Our study contributes to the literature on loan maturity because we are the first to use a comprehensive panel data to systematically examine whether NDBs—an understudied but important financial intermediary—play a maturity-lengthening role in filling the financing gap. Keywords: Loan maturity; Long-term finance; National development banks; Commercial banks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:158:y:2022:i:c:s0305750x22001632 DOI: 10.1016/j.worlddev.2022.105973 Access Statistics for this article World Development is currently edited by O. T. Coomes More articles in World Development from Elsevier |
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