Government Ownership of Banks, Institutions and Financial Development

Svetlana  Andrianova; Panicos Demetriades; Anja Shortland

Government Ownership of Banks, Institutions and Financial Development

Svetlana Andrianova, Panicos Demetriades, Anja Shortland

Research output: Contribution to journal › Article › peer-review

91 Citations (Scopus)

Abstract

Using a suitably modified locational model of banking, we examine the influence of institutions, such as deposit contract enforcement, in explaining the share of government owned banks in the banking system. We present cross-country evidence suggesting that institutional factors are relatively more important determinants of the share of state banks than political or historical ones. We argue that rather than privatizing or subsidizing state banks governments in developing countries should build institutions that foster the development of private banking.

Original language	English
Pages (from-to)	218-252
Number of pages	35
Journal	JOURNAL OF DEVELOPMENT ECONOMICS
Volume	85
Issue number	1-2
Publication status	Published - Feb 2008

Cite this

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title = "Government Ownership of Banks, Institutions and Financial Development",

abstract = "Using a suitably modified locational model of banking, we examine the influence of institutions, such as deposit contract enforcement, in explaining the share of government owned banks in the banking system. We present cross-country evidence suggesting that institutional factors are relatively more important determinants of the share of state banks than political or historical ones. We argue that rather than privatizing or subsidizing state banks governments in developing countries should build institutions that foster the development of private banking.",

author = "Svetlana Andrianova and Panicos Demetriades and Anja Shortland",

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AU - Andrianova, Svetlana

AU - Demetriades, Panicos

AU - Shortland, Anja

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N2 - Using a suitably modified locational model of banking, we examine the influence of institutions, such as deposit contract enforcement, in explaining the share of government owned banks in the banking system. We present cross-country evidence suggesting that institutional factors are relatively more important determinants of the share of state banks than political or historical ones. We argue that rather than privatizing or subsidizing state banks governments in developing countries should build institutions that foster the development of private banking.

AB - Using a suitably modified locational model of banking, we examine the influence of institutions, such as deposit contract enforcement, in explaining the share of government owned banks in the banking system. We present cross-country evidence suggesting that institutional factors are relatively more important determinants of the share of state banks than political or historical ones. We argue that rather than privatizing or subsidizing state banks governments in developing countries should build institutions that foster the development of private banking.

M3 - Article

SN - 0304-3878

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JO - JOURNAL OF DEVELOPMENT ECONOMICS

JF - JOURNAL OF DEVELOPMENT ECONOMICS

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ER -

Government Ownership of Banks, Institutions and Financial Development

Abstract

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