State-owned commercial banks. Issue 1 (2nd January 2023)

• Record Type: Journal Article
• Authors: Panizza, Ugo
• Is Part Of: Journal of economic policy reform. Volume 26:Issue 1(2023)
• Page Start: 44
• Page End: 66
• Publication Date: 2023-01-02
• Subjects: Banking -- state-owned banks -- financial stability; Economic policy -- Periodicals; Commercial policy -- Periodicals; Monetary policy -- Periodicals; International trade -- Periodicals; Developing countries -- Economic policy -- Periodicals; Former Soviet republics -- Economic policy -- Periodicals; Post-communism -- Periodicals; Policy sciences -- Periodicals; 338.9
• DOI: 10.1080/17487870.2022.2076678
• Languages: English
• ISSNs: 1748-7870

Abstract

ABSTRACT: This paper builds a new dataset on bank ownership and finds no evidence of a negative correlation between state-ownership of banks and economic growth. Banking crises predict increases in state-ownership but that there is no evidence that high state-ownership predicts banking crises. Contrary to past literature, the paper also shows that recent data show no difference between the profitability of private and public banks located in emerging and developing economies. The paper corroborates the existing literature which shows that in emerging and developing economies lending by state-owned banks is less procyclical than private bank lending.