SCHCLAREK CURUTCHET ALFREDO
Congresos y reuniones científicas
Título:
A theoretical model of bank lending: does ownership matter in times of crises?
Autor/es:
MICHAEL BREI; ALFREDO SCHCLAREK
Lugar:
Cambridge
Reunión:
Conferencia; SASE 24th Annual Conference; 2012
Institución organizadora:
Massachusetts Institute of Technology
Resumen:
This paper studies the behavior of public and private bank lending in the event of nancial crises from a theoretical perspective. The theoretical framework predicts that in times of crisis public banks are willing to lend more than private banks. In addition, we explore three hypothetical reasons for the heterogeneous behavior across private and public banks. Firstly, the objective of public banks, in contrast to private banks, is not only to minimize losses in the event of a nancial crisis, but also to promote the recovery of the whole economy. Secondly, public banks are more likely recapitalized in times of distress because their owner, the state, tends to have more nancial resources than private shareholders. Finally, public banks tend to su er less deposit withdrawals than private banks in a severe crisis because depositors perceive public banks as a safer alternative than private banks due to the implicit guarantee by the state. The policy implications are that public bank lending can be incorporated in an active monetary policy to counteract the consequences on the productive sector of a nancial crisis or recover from one.