Public bank lending in Africa in times of crisis

Florian Leon

Working Paper from Agence française de développement

Abstract: This paper examines public bank lending in Africa in times of crisis. To do so, we exploit an original data set covering all banks operating in eight West African countries. The final sample considers 112 banks, including 24 public banks, over the period 2000-2019. We focus on how public banks react during and in the three years after macroeconomic shocks. Our empirical analysis provides the following results. First, lending activity is reduced in the wave of a crisis. Second, public and private banks do not differ in their lending decisions during a downturn. However, public banks do not reduce their activity in years following a crisis, contrary to domestic private banks. Third, the most probable explanation of the previous finding is the stability of the resources of public banks, especially deposits. Finally, the countercyclicality of public banks does not come at the expense of the degradation of public banks’ health.

Keywords: Afrique (search for similar items in EconPapers)
JEL-codes: Q (search for similar items in EconPapers)
Pages: 46
Date: 2022-09-22
References: Add references at CitEc
Citations:

Published in Research Papers

Downloads: (external link)
https://www.afd.fr/sites/afd/files/2022-09-03-40-1 ... es%20of%20crisis.pdf (application/pdf)

Related works:
Journal Article: Public bank lending in Africa in times of crisis (2023)
Working Paper: Public bank lending in Africa in times of crisis (2023)
Working Paper: Public bank lending in Africa in times of crisis (2022)
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: https://EconPapers.repec.org/RePEc:avg:wpaper:en14481

Access Statistics for this paper

More papers in Working Paper from Agence française de développement Contact information at EDIRC.
Bibliographic data for series maintained by AFD ().