Bank Ownership and Credit Growth in Emerging Markets During and After the 2008–09 Financial Crisis — A Cross-Regional Comparison

This paper examines bank credit growth in emerging markets before, during, and after the 2008-09 financial crisis using bank-level data, focusing on the role of bank ownership. Credit growth by foreign banks lagged behind that of domestic banks in 2009 in Asia, and in 2010 in Latin America and emerg...

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Bibliographic Details
Main Author: Chen, Guodong
Other Authors: Wu, Yi
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2014
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Depository Institutions 
653 |a Banks and banking, Foreign 
653 |a State supervision 
653 |a Credit 
653 |a Banks 
653 |a Finance 
653 |a Industries: Financial Services 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Financial institutions 
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 Financial Institutions and Services: Government Policy and Regulation 
653 |a Mortgages 
653 |a Money 
653 |a Bank regulation 
653 |a Loans 
653 |a Banks and Banking 
653 |a Financial regulation and supervision 
653 |a Bank credit 
653 |a Banking 
653 |a Money and Monetary Policy 
653 |a Foreign banks 
653 |a Financial services law & regulation 
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520 |a This paper examines bank credit growth in emerging markets before, during, and after the 2008-09 financial crisis using bank-level data, focusing on the role of bank ownership. Credit growth by foreign banks lagged behind that of domestic banks in 2009 in Asia, and in 2010 in Latin America and emerging Europe. State-owned banks instead played a counter-cyclical role during the crisis in particular in Latin America and emerging Europe, and credit by stateowned banks also grew faster than that of private banks after the crisis in Latin America. Expansionary monetary policy on average led to higher credit growth. Banks in Latin America and Asia that relied more on retail funding had higher credit growth, in particular during the crisis. Better-capitalized banks and banks with more liquid assets also had faster credit growth. Finally, banks in countries with stronger banking regulation had higher credit growth during the crisis