The role of state-owned banks in crises: Evidence from German banks during COVID-19

Arbeitspapier

By adopting a difference-in-differences specification combined with propensity score matching, I provide evidence using the microdata of German banks that stateowned savings banks have lent less than credit cooperatives during the COVID-19 crisis. In particular, the weaker lending effects of state-owned banks are pronounced for long-term and nonrevolving loans but insignificant for short-term and revolving loans. Moreover, the negative impact of government ownership is larger for borrowers who are more exposed to the COVID-19 shock and in regions where the ruling parties are longer in office and more positioned on the right side of the political spectrum.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 6/2022

Classification and Topics

• Classification: Wirtschaft ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Capitalist Systems: Political Economy
• Subject: bank credit ; COVID-19 ; state-owned banks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Li, Xiang
• Event: Veröffentlichung
• (who): Halle Institute for Economic Research (IWH)
• (where): Halle (Saale)
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/265059
• Last update: 10.03.2025, 11:42 AM CET