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:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a State-Owned Banks and Fiscal Discipline  |c Jesus Gonzalez-Garcia, Francesco Grigoli 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2013 
300 |a 26 pages 
653 |a Finance, Public 
653 |a Depository Institutions 
653 |a Credit 
653 |a Commercial banks 
653 |a Public-Private Enterprises 
653 |a Banks 
653 |a Public finance & taxation 
653 |a Banks and banking 
653 |a Government debt management 
653 |a Monetary economics 
653 |a Public Enterprises 
653 |a Public sector 
653 |a Debt Management 
653 |a Debts, Public 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a State-owned banks 
653 |a Debt 
653 |a Mortgages 
653 |a Sovereign Debt 
653 |a Banks and Banking 
653 |a Civil service & public sector 
653 |a Macroeconomics 
653 |a Banking 
653 |a National Budget, Deficit, and Debt: General 
653 |a Governmental Loans, Loan Guarantees, Credits, and Grants 
653 |a Public Finance 
653 |a Money and Monetary Policy 
700 1 |a Grigoli, Francesco 
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989 |b IMF  |a International Monetary Fund 
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520 |a 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