State-owned banks and international shock transmission

Arbeitspapier

In this study, we reassess the links between commercial bank ownership and lending growth during the 1996-2019 period. We find evidence that the lending activities of foreign state-controlled and foreign privately owned banks differ, particularly during different crisis type periods and origins. Foreign state-controlled banks' loan growth rates are higher than those of foreign privateowned banks during host banking crises. By contrast, foreign state-controlled banks reduce their credit growth during a home banking crisis, while foreign private-owned banks increase lending in the host countries. Moreover, we find evidence that bank-specific characteristics were more important determinants of credit growth than ownership structure during the global financial crisis of 2008 and gain in importance in the post-crisis period.

Object Details

• ISBN: 978-92-899-5110-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2661

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation
• Subject: foreign banks ; state-controlled banks ; credit growth ; crisis ; internal capital market

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Borsuk, Marcin ; Kowalewski, Oskar ; Pisany, Pawel
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2022

Further information

• DOI: doi:10.2866/53112
• Handle: http://hdl.handle.net/10419/264486
• Last update: 10.03.2025, 11:43 AM CET