The Real Effects of Government-Owned Banks: Evidence from an Emerging Market

Carvalho, Daniel

doi:10.2139/ssrn.1717294

Cited by 90 publications

(120 citation statements)

References 42 publications

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“…Regarding the first strand, many studies note the strong association between bank ownership and lending behavior. Consistent with the political view of state ownership, some of these studies show that state-owned banks can be exploited by politicians in ways that drive bank lending to suboptimal levels, especially around electoral periods (Sapienza, 2004;Dinç, 2005;Khwaja and Mian, 2005;Carvalho, 2014;Infante and Piazza, 2014).…”

Section: Related Literaturementioning

confidence: 73%

Cyclicality of bank liquidity creation

Davydov

Fungáčová

Weill

2018

Journal of International Financial Markets, Institutions and Mo

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Section: Related Literaturementioning

confidence: 73%

Cyclicality of bank liquidity creation

Davydov

Fungáčová

Weill

2018

Journal of International Financial Markets, Institutions and Mo

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“…BNDES effects on the Brazilian economy have been investigated both in the national and the international literature. Recent examples of the latter include the studies by Bandeira- de-Mello et al (2015), Carvalho (2014) and Bonono et al (2015). Bandeira- de-Mello et al (2015) evaluate BNDES loans with reference to a range of firm performance indicators, including profitability and investment.…”

Section: Introductionmentioning

confidence: 99%

“…Bandeira- de-Mello et al (2015) evaluate BNDES loans with reference to a range of firm performance indicators, including profitability and investment. Carvalho (2014) investigates whether elections shift investments supported by BNDES towards politically attractive regions. Bonono et al (2015) study whether BNDES loans affect firms' investment.…”

Section: Introductionmentioning

confidence: 99%

Relaxing credit constraints in emerging economies: The impact of public loans on the productivity of Brazilian manufacturers

Sousa

Ottaviano

2018

International Economics

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In emerging economies credit constraints are often perceived as one of the most important market frictions hampering firm productivity growth in manufacturing. Huge amount of public money is devoted to the removal of such constraints but its effectiveness is still subject to an intense policy debate. This paper contributes to this debate by analyzing the effects of the Brazilian Development Bank (BNDES) loans.Exploiting the unique features of a dataset on BNDES loans to Brazilian manufactures, it finds that credit constraints facing Brazilian manufacturing firms are real, in particular for firms that apply to BNDES repeatedly, and BNDES support has allowed granted firms to match the performance of similar unconstrained firms but not to outperform them.

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“…Also, evidence exists of better quality financial intermediation, for example, lower loan‐loss provisioning, with more foreign entry (Martinez‐Peria and Mody ). This is especially so compared to state‐owned banks whose performance is generally found to be poor (La Porta, Lopez‐de‐Silanes, and Shleifer , Sapienza , Cole , Carvalho Forthcoming). Likely a number of factors are behind these effects, such as the introduction of new, more diverse products; greater use of up‐to‐date technologies; and know‐how spillovers (e.g., as people learn new skills from foreign banks, they migrate over time to domestic banks).…”

mentioning

confidence: 99%

Foreign Banks: Trends and Impact

Claessens¹,

Horen²

2014

J of Money Credit Banking

468

282

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Over the past two decades, foreign banks have become much more important in domestic financial intermediation, heightening the need to understand their behavior. We introduce a new, comprehensive database, made publicly available, on bank ownership (including the home country of foreign banks) for 5,324 banks in 137 countries over the period 1995–2009. We document large increases in foreign bank presence in many countries, but with substantial heterogeneity in terms of host and banks’ home countries, bilateral investment patterns, and bank characteristics. In terms of impact, we document that the relation between private credit and foreign bank presence importantly depends on host country and banks’ characteristics. Specifically, foreign banks only seem to have a negative impact on credit in low‐income countries, in countries where they have a limited market share, where enforcing contracts is costly and where credit information is limited available, and when they come from distant home countries. This shows that accounting for heterogeneity, including bilateral ownership, is crucial to better understand the implications of foreign bank ownership.

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The Real Effects of Government-Owned Banks: Evidence from an Emerging Market

Cited by 90 publications

References 42 publications

Cyclicality of bank liquidity creation

Cyclicality of bank liquidity creation

Relaxing credit constraints in emerging economies: The impact of public loans on the productivity of Brazilian manufacturers

Foreign Banks: Trends and Impact

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