Arbeitspapier

The government's role in government-owned banks

Abstract In this study, we reinvestigate the question of whether government banks are inferior to private banks. We use cross country data from 1993 to 2007 to trace the different types of government banks. These types comprise banks that acquire distressed banks, normal banks, or no banks at all. Contrary to common belief, the evidence shows that unless government banks are required to purchase a distressed bank because of political factors (the government's role), their performances are at par with that of private banks. This fact particularly holds true in countries with poor records on political rights and governance.

ISBN
978-952-6699-29-5
Language
Englisch

Bibliographic citation
Series: Bank of Finland Research Discussion Papers ; No. 15/2013

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Subject
Government banks
Political factor
Government role
Merger
Distressed bank
Institutional factor

Event
Geistige Schöpfung
(who)
Shen, Chung-Hua
Hasan, Iftekhar
Lin, Chih-Yung
Event
Veröffentlichung
(who)
Bank of Finland
(where)
Helsinki
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Shen, Chung-Hua
  • Hasan, Iftekhar
  • Lin, Chih-Yung
  • Bank of Finland

Time of origin

  • 2013

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