INVESTIGADORES
SCHCLAREK CURUTCHET Alfredo
congresos y reuniones científicas
Título:
Public Bank Lending during the Financial Crisis
Autor/es:
ALFREDO SCHCLAREK; MICHAEL BREI
Lugar:
Buenos Aires
Reunión:
Conferencia; III Congreso Anual AEDA - Consolidación del modelo productivo, propuestas para la nueva década; 2011
Institución organizadora:
Asociación de Economía para el Desarrollo de la Argentina
Resumen:
This paper studies the role of public bank lending in the event of
nancial crises from an empirical and theoretical perspective. On the
empirical side, we compare the lending responses across public and
private banks to nancial crises using balance sheet information for
about 882 major banks, of which 64 public banks, from 54 countries
during the period 1994 and 2009. Using panel regressions, we nd ev-
idence that the growth rate of public bank lending is higher than that
of private banks during a crisis. The theoretical framework allows us
to explore the reasons for the dierent behavior. Firstly, the objective
of public banks, in contrast to private banks, is not only to minimize
losses in the event of a nancial crisis, but also to promote the re-
covery of the whole economy. Secondly, public banks are more likely
recapitalized in times of distress because their owner, the government,
tends to have more nancial resources than private shareholders. Fi-
nally, public banks tend to suer less deposit withdrawals than private
banks in a severe crisis because depositors perceive public banks as a
safer alternative than private banks due to the implicit guarantee by
the public sector.