State-owned banks and international shock transmission

Marcin Borsuk, Oskar Kowalewski () and Pawel Pisany

No 2661, Working Paper Series from European Central Bank

Abstract: In this study, we reassess the links between commercial bank ownership and lending growth during the 1996–2019 period. We find evidence that the lending activities of foreign state-controlled and foreign privately owned banks differ, particularly during different crisis type periods and origins. Foreign state-controlled banks’ loan growth rates are higher than those of foreign private-owned banks during host banking crises. By contrast, foreign state-controlled banks reduce their credit growth during a home banking crisis, while foreign private-owned banks increase lending in the host countries. Moreover, we find evidence that bank-specific characteristics were more important determinants of credit growth than ownership structure during the global financial crisis of 2008 and gain in importance in the post-crisis period. JEL Classification: G01, G21, G28

Keywords: credit growth; crisis; foreign banks; internal capital market; state-controlled banks (search for similar items in EconPapers)
Date: 2022-05
New Economics Papers: this item is included in nep-ban, nep-ifn and nep-mon
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: State-owned banks and international shock transmission (2024)
Working Paper: State-owned banks and international shock transmission (2024)
Working Paper: State-owned banks and international shock transmission (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20222661

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