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State-Owned Banks and Fiscal Discipline

State-owned banks may help to soften the financing constraints of public sector entities and consequently become a factor that hampers fiscal discipline. Using a panel dataset, we find that a larger presence of state-owned banks in the banking system is associated with more credit to the public sect...

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Bibliographic Details
Main Author: Gonzalez-Garcia, Jesus
Other Authors: Grigoli, Francesco
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2013
Series:IMF Working Papers
Subjects:
Finance, Public
Depository Institutions
Credit
Commercial Banks
Public-private Enterprises
Banks
Public Finance & Taxation
Banks And Banking
Government Debt Management
Monetary Economics
Public Enterprises
Public Sector
Debt Management
Debts, Public
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
Micro Finance Institutions
State-owned Banks
Debt
Mortgages
Sovereign Debt
Civil Service & Public Sector
Macroeconomics
Banking
National Budget, Deficit, And Debt: General
Governmental Loans, Loan Guarantees, Credits, And Grants
Public Finance
Money And Monetary Policy
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:State-owned banks may help to soften the financing constraints of public sector entities and consequently become a factor that hampers fiscal discipline. Using a panel dataset, we find that a larger presence of state-owned banks in the banking system is associated with more credit to the public sector, larger fiscal deficits, higher public debt ratios, and the crowding out of credit to the private sector. These results suggest that the lending practices of state-owned banks should be carefully assessed in any strategy to pursue fiscal discipline
Physical Description:26 pages
ISBN:9781484392805

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