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
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 suer 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.