State Financial Institutions : Can They Be Relied on to Kick-Start Lending?

The need to kick-start lending to the real sector in response to the global financial crisis is leading many countries to expand the role of state-owned financial institutions. The effectiveness of the support by these institutions depends in large part on the nature of the shock, on their ability to leverage private commercial banks to scale up their impact, and on the existence of a sound institutional framework. While it is too early to evaluate their effectiveness, past experience with the use of such institutions is sobering. Whether countries will heed the les sons of this experience remains to be seen.

Bibliographic Details

Main Author:	Rudolph, Heinz P.
Language:	English
Published:	World Bank, Washington, DC 2010-01
Subjects:	ACCESS TO FINANCE, ACCOUNTABILITY, BALANCE SHEETS, BANK LENDING, BANK MANAGEMENT, BANK OF CANADA, BANK OF KOREA, BANK PRIVATIZATION, BANK REGULATION, BANKING ASSETS, BANKING CRISES, BANKING CRISIS, BANKING INSTITUTIONS, BANKING SUPERVISION, BANKING SYSTEMS, BASIS POINTS, BOARD MEMBERS, BONDS, BORROWING, BUSINESS DEVELOPMENT, BUSINESS DEVELOPMENT BANK, CAPACITY CONSTRAINTS, CAPITAL ALLOCATION, CAPITAL INJECTIONS, CAPITAL MARKETS, CENTRAL BANKS, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL PAPER, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE PRINCIPLES, CORRUPTION, CREDIT ALLOCATION, CREDIT CRUNCH, CREDIT DECISIONS, CREDIT GAP, CREDIT GROWTH, CREDIT GUARANTEES, CREDIT INSTITUTIONS, CREDIT RATING, CREDIT RATING AGENCY, CREDIT SUPPORT, DEBT, DEGREE OF RISK, DEMAND FOR CREDIT, DEPOSIT, DEPOSITS, DEVELOPMENT BANKS, DEVELOPMENT FINANCE, DEVELOPMENT FINANCE INSTITUTION, DEVELOPMENT FINANCE INSTITUTIONS, ECONOMIC GROWTH, ECONOMIC STABILITY, ECONOMICS, EMERGING ECONOMIES, EMERGING MARKETS, ENDOWMENTS, EQUITY STAKES, EXCHANGE RATE, EXPORT FINANCING, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL DIFFICULTIES, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL REFORMS, FINANCIAL RESOURCES, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, GOOD CORPORATE GOVERNANCE, GOVERNANCE ARRANGEMENTS, GOVERNMENT FUNDING, GOVERNMENT OWNERSHIP, GOVERNMENT PAPER, GOVERNMENT SUBSIDIES, GUARANTEE FUND, HOUSEHOLDS, IDLE CAPACITY, IMPLICIT GOVERNMENT GUARANTEE, IMPLICIT GUARANTEE, INCORPORATED, INDIVIDUALS, INSURANCE, INSURANCE PRODUCTS, INTEREST RATE, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, ISSUANCE, LACK OF FINANCE, LACK OF TRANSPARENCY, LARGE COMPANIES, LENDER, LENDER OF LAST RESORT, LENDING BEHAVIOR, LIMITED, LINES OF CREDIT, LIQUIDITY, LIQUIDITY PROBLEMS, LOAN, LOAN PORTFOLIOS, LONG-TERM COSTS, LONG-TERM LOANS, MANAGERS, MANDATES, MARKET DISCIPLINE, MARKET FAILURE, MARKET FAILURES, MARKET PARTICIPANTS, MARKET PLAYERS, MARKET SHARE, MONETARY POLICY, OPERATIONAL COSTS, PAYMENT SYSTEM, POLICY RESPONSE, POLICY RESPONSES, POLITICAL ECONOMY, POLITICAL PARTY, POOR CREDIT, PRICING POLICIES, PRIVATE BANKS, PRIVATE COMMERCIAL BANKS, PRODUCTIVITY, PROFITABILITY, PRUDENTIAL REGULATION, PUBLIC COMPANIES, PUBLIC DEBT, PUBLIC DEBT MARKETS, PUBLIC POLICY, RATE OF RETURN, REAL SECTOR, RECAPITALIZATION, RECESSION, RECESSIONS, REGULATORY FORBEARANCE, REGULATORY REFORM, RETURN, RETURNS, RISK AVERSION, RISK MANAGEMENT, RISK MANAGEMENT STRATEGIES, RISK MANAGEMENT SYSTEMS, SAFER ASSETS, SAVINGS, SHAREHOLDERS, SHORT-TERM LIQUIDITY, STAKEHOLDERS, STATE BANKS, STATE GUARANTEE, SYSTEMIC RISK, TECHNICAL ASSISTANCE, TIER 1 CAPITAL, TRADE FINANCE, WRITTEN RECORD,
Online Access:	http://documents.worldbank.org/curated/en/2010/01/12041664/state-financial-institutions-can-relied-kick-start-lending https://hdl.handle.net/10986/10216
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