The government's role in government-owned banks
Shen, Chung-Hua; Hasan, Iftekhar; Lin, Chih-Yung (14.08.2013)
JulkaisusarjaBank of Finland Research Discussion Papers
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-20140807335
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. Keywords: Government banks, Political factor, Government role, Merger, Distressed bank, Institutional factor JEL C23, G21, G28, G34
Ilmestynyt myös Journal of Financial Services Research 2013.