Public bank lending in times of crisis

La banca nacional de desarrollo en Colombia

“…Más aún, resaltaron la relación entre el crecimiento económico y el desarrollo financiero, por lo cual la "represión financiera", uno de cuyos componentes era la presencia de bancos públicos, tenía efectos adversos (La Porta et al, 2002;Lazzarini et al, 2015). Bajo esta lógica se impulsó la privatización de numerosos bancos públicos a partir de los años noventa, y en algunos casos desde antes (Brei y Schclarek, 2013). Trabajos como los de Andrianova et al (2008Andrianova et al ( y 2010 mostraron, sin embargo, que la omisión de variables institucionales sesgaba los resultados de estos autores, en particular que la captura política de los bancos era más probable en un ambiente institucional débil.…”

Credibility and class in the evolution of public banks: the case of Turkey

“…Private banks, especially foreign, are pro-cyclical lenders -that is, they expand credits in the good times and slash them in the bad, exacerbating the peaks of both business cycles (World Bank 2012, 12;Bertay et al 2015). Post crisis research also confirms that public banks can effectively operate counter-cyclically (Brei and Schclarek 2013). Turkey was no exception to this pattern.…”

“…The point is not to assert public ownership superiority but to insist that greater emphasis is needed on the historical contexts of different countries, and the specificity of their private and public banking systems, in ways that do not prejudge public bank ownership in and of itself (cf. Körner and Schnabel 2011;Brei and Schclarek 2013;Ho 2013;Mazzucato and Caetano 2015).…”

Dissecting Foreign Bank Lending Behavior During the 2008–2009 Crisis

“…This is important because government banks are known to behave differently than private domestic banks. In particular, Micco and Panizza () and Bertay, Demirguc‐Kunt and Huizinga () find that lending by government‐owned banks is less procyclical than lending by private banks and Brei and Schlarek () find that government‐owned banks lend reltatively more than private banks during financial crises. Therefore, in light of this evidence, lumping government‐owned banks together with private banks when trying to understand the behavior of foreign‐owned banks might be inappropriate and lead to misleading results.…”